IC Markets Margin Call Traurig über Ihre verloren. Das Leben muss weitergehen. Stop Handel für während. Das ist meine Erfahrung. Es hängt davon ab, was Makler sind Sie verwenden. Vielleicht nutzen Sie volle Marge oder Hebelwirkung. Wie 1: 1000. Ich habe eine Erfahrung bei voller Marge und voller Hebelwirkung. Wenn der Markt umgekehrt meine Balance wurde negativ. Also, was zu tun ist. Nur vergessen, dass Konto und öffnen Sie neue Konto. Einzahlung wieder. Im mit Instaforex. Sie sprechen über INSTAFOREX. Wo sie regiert werden. Hallo Sund, ich kann bestätigen, dass keine Anpassungen auf Ihrem Konto XXXXXX vorgenommen wurden, da alle ausgeführten Preise von unseren Liquiditätsanbietern korrekt überprüft worden sind. Lassen Sie uns wissen, wenn Sie weitere Fragen haben. Mit freundlichen Grüßen, Sung Choi Support Teamleiter IC Märkte Risiko Warnung: Handel Derivate trägt ein hohes Maß an Risiko für Ihr Kapital und Sie sollten nur den Handel mit Geld, das Sie sich leisten können, zu verlieren. Trading Derivate sind möglicherweise nicht für alle Anleger geeignet, deshalb stellen Sie bitte sicher, dass Sie die damit verbundenen Risiken vollständig verstehen und suchen Sie gegebenenfalls einen unabhängigen Rat. Eine Produkt-Disclosure Statement (PDS) kann entweder von dieser Website oder auf Anfrage von unseren Büros erhalten werden und sollte vor dem Abschluss einer Transaktion mit uns betrachtet werden. International Capital Markets Pty Ltd. ACN 123 289 109. AFSL Nr. 335692. Hinweis für den Empfänger Die Informationen in dieser E-Mail und Anhängen können vertrauliche und / oder privilegierte Informationen enthalten. Sie ist ausschließlich für den (die) Empfänger bestimmt. Wenn Sie nicht der beabsichtigte Empfänger sind, benachrichtigen Sie bitte sofort den Absender (und zerstören Sie diese E-Mail und alle Anhänge von allen Computern). Jede Vervielfältigung, Vervielfältigung der Weiterverbreitung in ganzen oder in Teilen dieser E-Mail oder ihrer Anhänge oder jeglicher anderen Handlungen in Bezug auf diese E-Mail oder ihre Anhänge ist streng verboten. 2014 International Capital Markets Pty Ltd Alle Rechte vorbehalten. Louise Clark (Support-Team) (IC Markets) Jan 23, 23:09 HI Sund Ich konnte nicht finden, die Anpassung, die anscheinend auf dieses Konto gemacht wurde. Bitte überprüfen Dank Freundliche Grüße, Louise Clark Support IC Märkte Risiko Warnung: Handel Derivate trägt ein hohes Maß an Risiko für Ihr Kapital und Sie sollten nur den Handel mit Geld, das Sie sich leisten können, zu verlieren. Trading Derivate sind möglicherweise nicht für alle Anleger geeignet, deshalb stellen Sie bitte sicher, dass Sie die damit verbundenen Risiken vollständig verstehen und suchen Sie gegebenenfalls einen unabhängigen Rat. Eine Produkt-Disclosure Statement (PDS) kann entweder von dieser Website oder auf Anfrage von unseren Büros erhalten werden und sollte vor dem Abschluss einer Transaktion mit uns betrachtet werden. International Capital Markets Pty Ltd. ACN 123 289 109. AFSL Nr. 335692. Hinweis für den Empfänger Die Informationen in dieser E-Mail und Anhängen können vertrauliche und / oder privilegierte Informationen enthalten. Sie ist ausschließlich für den (die) Empfänger bestimmt. Wenn Sie nicht der beabsichtigte Empfänger sind, benachrichtigen Sie bitte sofort den Absender (und zerstören Sie diese E-Mail und alle Anhänge von allen Computern). Jede Vervielfältigung, Vervielfältigung der Weiterverbreitung in ganzen oder in Teilen dieser E-Mail oder ihrer Anhänge oder jeglicher anderen Handlungen in Bezug auf diese E-Mail oder ihre Anhänge ist streng verboten. 2014 International Capital Markets Pty Ltd Alle Rechte vorbehalten. Diese E-Mail ist ein Service von IC Markets. Lieferung von Zendesk. Nicht einmal mein Name können sie schreiben, wahrscheinlich haben sie nicht einmal die Mühe, auf mein Konto zu schauen. Ich werde gegen die zuständigen Institutionen Anklage erheben. SCAMMERS und THIEFS Sie sind wahrscheinlich entweder durch ihre Liquidität quotprovidersotot unter Druck gesetzt, um den Preis zu akzeptieren oder sind im Einklang mit ihnen. Etwas für ASIC herauszufinden. Diese SNB-Veranstaltung ist nicht nur ein Stress-Test für Broker dies wird zu einem Stress-Test für Finanz-Regulierungsbehörden auf der ganzen Welt aufgrund der skrupellosen Aktion der Liquiditätsstopper und der Broker. Machen Sie Ihre Verluste in der Demo. Verdienen Sie Ihre Gewinne live. Sie sind wahrscheinlich entweder durch ihre Liquidität quotprovidersot unter Druck gesetzt, um den Preis zu akzeptieren oder sind im Einklang mit ihnen. Etwas für ASIC herauszufinden. Diese SNB-Veranstaltung ist nicht nur ein Stress-Test für Broker dies wird zu einem Stress-Test für Finanz-Regulierungsbehörden auf der ganzen Welt aufgrund der skrupellosen Aktion der Liquiditätsstopper und der Broker. Ja, ich stimme zu, es ist an der Zeit, dass der Forex-Markt einer größeren regulatorischen Kontrolle unterliegt. Die meisten von uns fragen ist ein ehrliches System, und Sie können Ihr Risiko quantifizieren. Derzeit ist das nicht der Fall. Ja, ich stimme zu, es ist an der Zeit, dass der Forex-Markt einer größeren regulatorischen Kontrolle unterliegt. Die meisten von uns fragen ist ein ehrliches System, und Sie können Ihr Risiko quantifizieren. Derzeit ist das nicht der Fall. Ich stimme absolut zu. Und hoffentlich ist die größere regulatorische Kontrolle auf sie, nicht auf uns, Einzelhändler. In den USA hat die CFTCNFA, die Regulierungsbehörde, die wirklich die Futures-Industrie reguliert, 1) die Hebelwirkung TWICE, zuerst auf 100: 1 und mehrere Jahre, begrenzt Bis 50: 1 2) verboten Hedging 3) auf FIFO bestand und vor kurzem, 4) nicht erlaubt Finanzierung von Konten mit Kreditkarten. LOL Dieses gibt mir die meisten Lachen In der Zwischenzeit sind diese Liquidität quotprovidersquot frei zu stoppen Bereitstellung von Anführungszeichen, um eine quotblack holequot von Null Liquidität auf dem Markt zu schaffen und erstellen Sie dann einen Preis aus der dünnen Luft, die 7K Pips schlechter als der veröffentlichte Markt ist Preis von EBS. Und so weit gehen sie weg scot-free und genießen das Geld, das sie von uns beraubt. So zumindest hoffe ich, dass ASIC in der Lage sein wird, etwas richtig für uns Einzelhändler zu tun und ein Beispiel für alle Regulierungsbehörden auf der ganzen Welt zu folgen. Machen Sie Ihre Verluste in der Demo. Verdienen Sie Ihre Gewinne live. Mitglied seit Feb 2013 Status: Mitglied 68 Beiträge Ich hatte ein konstruktives Gespräch mit Angus Walker gestern Abend und ich wollte mit jedem klar, dass IC Markets schließlich machen eine Einstellung auf mein Konto am Ende. Ich verstehe, dass Angus hat ziemlich zwischen wütenden Händlern und IC Markets Management strategischen Entscheidungen sowohl in Bezug auf die Wirtschaft (konstant Zitat Streaming) und Service (Kompensation Kunden) gefangen. Also aus Achtung vor Angus, der den größten Teil des Chaos geschultert hat, werde ich die genaue Art der Anpassung nicht angeben, um kein Vakuum von Ansprüchen zu schaffen, zumal alle Fälle weit voneinander abweichen. Zunächst aber möchte ich seine Hilfsbereitschaft und sein geradliniges Gespräch, das nach diesen zwei Wochen der Verwirrung erfrischend war, unterstreichen. Zweitens war der Telefonanruf hilfreich, um ein besseres Verständnis für die Auswirkungen des Geschehens in der gesamten Verantwortungskette zu bekommen. Im Wesentlichen hat IC Markets eine geschäftliche Entscheidung getroffen. Eine Wahl, die sich offensichtlich auf ein Dilemma stützt, für das ich eine Meinung habe, aber für die es keine richtige Antwort gibt. Diese Wahl ist, dass nicht Herunterfahren IT-Systeme und nicht stoppen Händler von der Platzierung von Trades während Hochvolatilität Veranstaltungen. Die Wahrheit ist, dass viele Händler wollen immer in der Lage, den Handel zu allen Zeiten und kann gleichermaßen beschuldigt IC Markets sollten sie keine Anführungszeichen (auch Ausreißer LP Gebote) während der SNB Veranstaltung. Es gibt zwei Schulen. Ich gehöre eher dem quotallow fairen Preis oder geschlossene Systeme downquot ein und ich respektvoll nicht mit ihrer Geschäftsauswahl, die zu absurden Extremen führen kann (daher meine Forderung). Aber auch dies ist ein Geschäftsmodell, das vielen anderen Händlern entgegenkommt und es klar umrissen hat, ist ebenso ehrbar wie wertvoll, wenn es darum geht, ihre eigenen Handelsprioritäten mit denen der IC-Märkte abzustimmen. Aus diesem Grund, macht diese Wahl, anders als andere Broker, ihre Anführungsstrategie anfälliger für verbreitete Spikes und schikanierte LP-Anführungszeichen. Auf der anderen Seite, und im Gegensatz zu anderen Brokern, können Sie während der Nachrichtenveranstaltungen handeln und Sie erhalten auch Fesseln Spreads während der regulären Marktzeiten. Es ist ein Kompromiss. Auch hier gibt es keine richtige Antwort. Es ist nur eine Frage, welche Art von Handelssystemen Ihre Rentabilität abhängt. Also alles in allem, und trotz der Kommunikation, die zugegebenermaßen sehr schlecht war in den letzten zwei Wochen und könnte dazu führen, dass Annahmen, kann ich nach dem Gespräch mit Angus bezeugen, dass IC Markets ist wirklich bemüht, ihre Kunden-Erwartungen zu erfüllen und gleichzeitig solide Handel Vorteile versus Konkurrenten, weil wir sie gegenüberstellen, kamen wir alle zu IC Märkten in erster Linie wegen ihrer engen ECN Spreads und keine Second-Look-Ausführung. Ich denke, dass jeder jetzt besser ist zu wissen, was von ihrem Geschäftsmodell erwarten und ich wollte sicherstellen, dass Angus nimmt Kredit für die Betreuung von meinem Fall. Beste Grüße, Princeton Mitglieder müssen mindestens 0 Gutscheine in diesem Thread posten. Chuck Hughes hat vor kurzem einen exklusiven Beratungsdienst mit dem Namen ldquoAutomatic Income Methodrdquo ins Leben gerufen Deckt alles, was Nutzer wissen müssen, wie man im Forex-Handel erfolgreich zu sein. Los Angeles, CA, Vereinigte Staaten 8211 11. Januar 2017 MarketersMedia mdash Automatische Einkommensmethode hilft Tradern, ihre Handelsgewinne zu maximieren. Es verfügt über spezifische AIM 6times6 Handelsanweisungen geliefert per E-Mail und eine Kopie von Chuck Hughesrsquo beliebten W. O.W. Garantierte Einkommen Optionen Kurs. Chuck Hughes hat vor kurzem einen exklusiven Beratungsdienst namens ldquoAutomatic Income Methodrdquo, die alles, was Nutzer wissen müssen, über einen Gewinn durch Forex-Handel wissen. Chuck hat eine Reihe von Jahren verbracht, um seine Forschung auf binäre Optionen Signale zu tun und kam mit diesem Beratungsdienst, der ihm gute Gewinne aus der ersten Woche auf Abteilungen gab. Diese Software erlaubt es Händlern, spezifische Regeln für Handelseinträge und Exits einzurichten, die nach dem Programmieren automatisch über einen Computer ausgeführt werden können. Chuck hat diese Software mit unzähligen Jahren der Forschung erstellt und er zufällig ein siebenmaliger Gewinner eines einflussreichen internationalen Handelswettbewerb sein, der klar zeigt, dass seine Strategien alle anderen unter Marktbedingungen jeder Art übertreffen. Außerdem hatte er nie ein einziges verlierendes Jahr in mehr als 14 Jahren und während seiner Zeit haben seine Handelsvorschläge lebende Handelsgewinne mit insgesamt 7.583.213 zusammengebracht. Sein letzter Start Automatische Einkommen-Methode stößt auf eine benutzerfreundliche Software und seine Dienstleistungen können von Händlern auf verschiedenen Fähigkeiten genutzt werden, um schnell lernen, die Handelsstrategien und beginnen, Gewinne zu machen. Eine Reihe von Menschen fehlt Wissen, wenn es um den Handel geht und während die Menschen investieren, würden sie eine Menge Zeit, um zu entscheiden, wo zu investieren. Automatic Income Method ist ein exklusiver Beratungsdienst, der die Dienste mit nur einem Klick anbietet und alles nach den aktuellen Markttrends analysiert, die den Benutzern sehr lange gedauert hätten. Der Schöpfer behauptet, daß dieses Programm eine Gewinnrate von mehr als 95 genießt, die in der Handelswelt eine ziemlich große Sache ist. Darüber hinaus bietet dieses System spezifische AIM 6times6 Handelsanweisungen per E-Mail und eine gedruckte Version von Chuck Hughesrsquo beliebten W. O.W. Garantierte Einkommen Optionen Kurs. Benutzer brauchen keine technischen Kenntnisse für die Nutzung dieser Dienstleistung, da es eine verbesserte visuelle Schnittstelle macht, aufgrund dessen es einfacher zu verstehen und nutzen Sie das System ohne Schwierigkeiten haben. Hier sind Händler in der Lage, ihre Handelsbeträge und Optionen aufzustellen und danach lehnen Sie sich zurück und lassen Sie die Software, um seine Sache zu tun. Automatische Einnahme-Methode können die Benutzer wissen, wann ist der richtige Zeitpunkt, um ihre Geschäfte auszuführen. Ein vorheriges Wissen im binären Optionshandel kann nur userrsquos Chancen des Profitierens mit diesem System verbessern, das leicht Geld für sie bildet. Darüber hinaus wird dieses System zu zwei Preispunkten angeboten, ein 6 Monate Abo 18 Monate Abo. Zusätzlich wird es durch eine volle Leistungsgarantie unterstützt und wird von einem hohen umwandelnden unten-verkaufen Angebot von Chucks W. O.W gefolgt. Garantierte Einkommen Optionen Kurs. Kontaktinfo: Name: Andrew Ellis Organisation: Chuck Hughes AIM Release-ID: 160569 Dieser Artikel wurde ursprünglich über SproutNews vertrieben. SproutNews, Frankly und diese Website machen keine Garantien oder Zusicherungen im Zusammenhang damit. Wenn Sie mit dieser Seite verbunden sind und möchten, dass es entfernt wird, wenden Sie sich bitte an pressreleasesfranklyincBrokers jagen Sie nach negativen Kontostand Joined Mar 2012 Status: Mitglied 49 Posts Bitte posten Sie hier, wenn Ihr Broker jagt Sie für Geld, um einen negativen Kontostand nach dem EURCHF Debakel zurückzuzahlen , Ob Sie bezahlen und welche Maßnahmen ergriffen werden, wenn Sie nicht bezahlt haben. Ich war nicht glücklich beteiligt, aber ich kontaktierte meine Broker LMAX (die ich immer gefunden habe brillant und die besten Broker ich bis jetzt verwendet haben), um herauszufinden, was in einem solchen Szenario passieren würde. Sie sagten nur, dass ich vor Gericht gehen würde, wenn eine solche Schuld nicht bezahlt wurde. Was ist irgendwie beängstigend Ich denke darüber nach, ob ich sie in Zukunft benutzen sollte. Ich frage mich auch, wie dies möglich wäre - obwohl sie nur Käufer mit Verkäufern zusammenbringen, vermutlich die Leute, die geschuldetes Geld sind, werden von tausenden anderen geschuldet, die rechtliche Schritte gegen sie unmöglich machen würden. Mitglied seit: Jun 2010 Status: Mitglied 3.610 Beiträge Bitte poste hier, wenn dein Makler dich nach Geld verliert, um einen negativen Kontostand nach dem EURCHF-Debakel zurückzuzahlen, egal ob du bezahlt wirst und was getan wird, wenn du nicht bezahlt hast. Ich war nicht glücklich beteiligt, aber ich kontaktierte meine Broker LMAX (die ich immer gefunden habe brillant und die besten Broker ich bis jetzt verwendet haben), um herauszufinden, was in einem solchen Szenario passieren würde. Sie sagten nur, dass ich vor Gericht gehen würde, wenn eine solche Schuld nicht bezahlt wurde. Was ist irgendwie beängstigend Ich denke darüber nach, ob ich sie in Zukunft benutzen sollte. Obwohl alles, was sie tun, ist nur Ordnung Matching passende Käufer mit Verkäufern, aber sie leihen Sie das zusätzliche Geld für Sie über die Leverage-Rate wie ein Darlehen Handel und wenn Ihr Handel geschlossen ist, Sie zurückzahlen, dass zusätzliche Geld, das Sie mit Ihrem geliehen Kontostand und Ihr Profitverlust. Wenn Ihr Kontostand ist negativ, das bedeutet, Sie haben nicht genug zu zahlen für das, was der Makler Ihnen ausgeliehen hat, dann haben Sie auf das Darlehen, wie Sie auf Ihre Hypothek oder Ihr Auto Darlehen eingestellt zurückgesetzt. Da Ihr Kontostand nicht wie Ihre Hypothek besichert ist, hat Ihr Makler nichts zu repossess von Ihnen für sie zu verkaufen, um einige Darlehen Betrag zu erholen, so genau wie die Wiederherstellung von jedem ungesicherten Darlehen, die einzige Rekurs, dass sie haben 1) senden Sie an 2) nehmen Sie vor Gericht oder 3) Mieten einige quotprofessionalsquot zu zeigen, an Ihrer Tür mit einigen großen Stöcken. Scary tatsächlich dachte, dass man ganz plötzlich auf dem Haken für Zehntausende von Dollar in nur 1 Stunde. Ich bin enttäuscht und überrascht zu erfahren, dass LMAX beschließt, nach den negativen Salden zu gehen. Viele Makler entschieden sich, negative Guthaben zu vergeben, anstatt sie zurückfordern zu müssen. Wenn alle diese LPs wirklich eine Unze des Gewissens haben, würden sie wählen, diese negativen Salden von ihren eigenen Kunden zu verzeihen, die Makler und wiederum können die Makler die negativen Salden von uns Händlern verzeihen, da sie diejenigen waren, die diese großen negativen Salden verursacht Durch künstliche Beendigung der Liquidität so einhändig bewirken, dass die riesigen 1,8 K Pips fallen. Wenn sie auf dem Markt blieben und weiterhin Liquidität zur Verfügung stellten, gäbe es noch negative Salden, aber das Gemetzel wäre nicht so groß. Dies ist fast wie die Preisfestsetzung, so dass sie wirklich sollte nicht stehen, um von diesem schlecht erhaltenen Gewinne profitieren, aber natürlich sind sie alle aus s gemacht, so werden sie nach den Maklern zu jagen, bis sie zum Bankrott getrieben werden und damit die Zerstörung der Ganze gesamte Retail-Forex-Industrie und dann Devisenhandel wieder zurück zu ihren exklusiven quotBig Boys Clubquot. Und wir gehen alle zurück zu Investmentfonds. Machen Sie Ihre Verluste in der Demo. Verdienen Sie Ihre Gewinne live. Ich war nicht glücklich beteiligt, aber ich kontaktierte meine Broker LMAX (die ich immer gefunden habe brillant und die besten Broker ich bis jetzt verwendet haben), um herauszufinden, was in einem solchen Szenario passieren würde. Sie sagten nur, dass ich vor Gericht gehen würde, wenn eine solche Schuld nicht bezahlt wurde. Was ist irgendwie beängstigend Ich denke darüber nach, ob ich sie in Zukunft benutzen sollte. Ich frage mich auch, wie dies möglich wäre - auch wenn sie nur Käufer mit Verkäufern vermutlich die Leute, die geschuldeten Geld sind geschuldet werden von Tausenden von anderen, die machen würde. Meine Quelle. Und ehrlich gesagt habe ich zu denken, LMAX ist ziemlich gut, aber nach dem Einkaufen, gibt es gleich gute Alternative Broker mit billigeren Kosten. Machen Sie Ihre Verluste in der Demo. Verdienen Sie Ihre Gewinne live. Ich frage mich auch, wie dies möglich wäre - obwohl sie nur Käufer mit Verkäufern zusammenbringen, vermutlich die Leute, die geschuldetes Geld sind, werden von tausenden anderen geschuldet, die rechtliche Schritte gegen sie unmöglich machen würden. Und btw es wäre nicht schwierig für sie zu verfolgen Rechtsstreitigkeiten gegen alle Händler. Sie gehen einfach nach den Händlern eins nach dem anderen wie die USA verfolgt Menschen für Piraterie-Verletzung für Musik-Sharing zurück in den neunziger Jahren. Broker wie LMAX haben bereits Anwälte, so dass sie genauso gut nutzen können. Machen Sie Ihre Verluste in der Demo. Verdienen Sie Ihre Gewinne live. Sie sagten nur, dass ich vor Gericht gehen würde, wenn eine solche Schuld nicht bezahlt wurde. Jetzt frage ich mich, wie dieser Akt getan werden könnte. Für besagte Klienten überseeisches Land sind, konnten sie jede mögliche Regulierung des Landes verletzen, die ich keine korrekte Kenntnisse mit Regulierungsrecht oder viel von ihm habe. Egal, was ich sehe, dass dies nicht richtig, um solche unausweichlichen Ereignis zu behandeln. Scheinen alle scheinen von einem riesigen Verlust, und sie bekamen immer meine tiefste Sympathie. Ich dont Handel mit ihnen glücklich, aber für eine solche Klage, würde ich denken, konkreter Weg zu einer solchen Tat. haben Sie. Abhängig von dem Land, Schulden in Großbritannien ist eine zivilrechtliche Angelegenheit nicht kriminell. Und die Leute klopfen an die Tür und nehmen Waren. Sie können auch Ihren Namen in den Gerichten, die es schwer zu bekommen Kredit in Zukunft. Jedes Land wird anders sein. Nicht nur das. Im Falle eines Zahlungsverzugs mit LMAX müssen Sie zahlen: - Wenn die Belastung 10.000 oder weniger (oder ein gleichwertiger Betrag in einer anderen Währung) ist, bis spätestens 16.00 Uhr am Geschäftstag - Wenn die Belastung höher als 10.000 ist Am selben Tag oder für den Fall, dass der negative Cash-Salden nach 14.00 Uhr erfolgt, bis zum nächsten Geschäftstag nach dem Tag, an dem der negative Cash-Salden entstehen. - Wenn Sie nicht zahlen, berechnen sie Ihnen Zinsen auf den fälligen Betrag, 4 über dem Standardzinssatz. Forex ist ein Verlierer Spiel. Die einzigen Leute, die wir vor Gericht bringen sollten, sind tatsächlich die Liquiditätsanbieter für die künstliche Herabsetzung der Preise, um finanzielle Verluste zu verursachen. Korrektur: LPs, die die Liquidität durch künstliches Stoppen von Preisnotierungen, die den ausfallenden Preisverfall auslösten, verursachten, Händler und Makler. Sie beschlossen, den Markt verlassen, indem sie uns die Tasche von s. Nun, das ist wirklich ihre Scheiße, die sie selbst erschaffen, so warum sollten wir holen die Registerkarten Havent wir ihnen genug in der Rettungspaket Geld, das sie erhielten vier Jahre für die Finanzkrise, die wieder von ihnen verursacht wurde Nein, das ist IHR S, wir sind Um sie sofort zurück zu schieben. Vielen Dank für die Bereitstellung mir eine Chance zu klären. Wenn ich diese Makler waren, würde ich meine Kunden handelnde Tätigkeiten betrachten, wenn die Händlernegativbilanzen innerhalb der ersten 3 Minuten nach der Nachrichten Freigabe ankamen, als die Liquiditätsquotprovidersquot dort waren, das Bereitstellen der Preisanführungsstriche und das Bilden des Marktes, würde ich erwägen, sie wieder zu erlangen Der Händler aber wenn das negative Gleichgewicht war ein Ergebnis der Handel nicht in der Lage, aufgrund der Liquidität quotprovidersquot Herunterfahren des Marktes ausgeführt werden, würde ich schieben sie zurück zu meiner Liquidität quotproviderquot mit meinem Mittelfinger in einer sehr freundlichen Geste und verklemmt Nicht nach meinen Kunden gehen, die Händler für einen Cent. Wenn sie mich vor Gericht bringen, würde ich sie verklagen, um für die Preisfestsetzung zu kollidieren. Machen Sie Ihre Verluste in der Demo. Verdienen Sie Ihre Gewinne live. Financial Crimes Report 2010-2011 Finanzkriminalitätsbericht 2010-2011 Financial Crimes Bericht an die öffentlichen Geschäftsjahre 2010-2011 (1. Oktober 2009 8211 30. September 2011) Überblick und Prioritäten: Das Federal Bureau of Investigation (FBI ) Untersucht Fragen im Zusammenhang mit Betrug, Diebstahl oder Unterschlagung innerhalb oder gegen die nationale und internationale Finanzgemeinschaft. Diese Verbrechen sind durch Betrug, Verborgenheit oder Vertrauensverletzung gekennzeichnet und sind nicht abhängig von der Anwendung oder Androhung von körperlicher Gewalt oder Gewalt. Diese Handlungen sind von Einzelpersonen und Organisationen verpflichtet, persönliche oder geschäftliche Vorteile zu erhalten. Das FBI konzentriert seine finanziellen Verbrechenuntersuchungen auf solche kriminellen Tätigkeiten wie Unternehmensbetrug, Wertpapier - und Warenbetrug, Gesundheitspflegebetrug, Finanzinstitutbetrug, Hypothekenbetrug, Versicherungsbetrug, Massenmarktbetrug und Geldwäsche. Dies sind die identifizierten vorrangigen Kriminalitätsprobleme der Abteilung für Finanzkriminalität (FCS) des FBI. Aufgabe: Die Aufgabe des FCS besteht darin, die Untersuchung von Finanzbetrug zu überwachen und die Vereitelung von Vermögenswerten von Personen, die sich an föderalen Straftaten beteiligen, zu erleichtern.160 In den Geschäftsjahren 2010-2011 bestand das FCS aus der Vermögensverwaltungsgeldwäscherei (AFMLU), der Wirtschaftskriminalität (ECU), der Abteilung für Gesundheitspflegebetrug (HCFU), der Kriminalrechnungseinheit (FAU), der FIFU und dem Financial Intelligence Center (FIC). Die ECU ist verantwortlich für beträchtliche Betrugsdelikte, die auf Einzelpersonen, Unternehmen und Industriezweige abzielen, einschließlich Unternehmensbetrug, Versicherungsbetrug (nicht Gesundheitsfürsorge), Wertpapier - und Rohstoffbetrug (z. B. Investitionsbetrugssysteme wie Ponzi, Pyramide und fortgeschrittene Gebühr) Systeme und Wertpapiermanipulationen) und Massenmarktbetrug. Das HCFU überwacht Untersuchungen für Einzelpersonen und Organisationen, die öffentliche und private Gesundheitssysteme betrügen. Im Rahmen der HCFU untersuchte Bereiche umfassen die Abrechnung von nicht erbrachten Dienstleistungen, die Abrechnung eines höheren erstattungsfähigen Dienstes als durchgeführte (Upcodierung), die Durchführung unnötiger Dienste, Rückschritte, die Entflechtung von Tests und Dienstleistungen zur Erzeugung höherer Gebühren, Arzneimitteldrogen Abzweigung, ambulante Operation und Internet-Apothekenverkäufe.160 Die Mission der FIFU besteht darin, kriminelle Organisationen und Einzelpersonen zu identifizieren, zu zielen, zu stören und zu zerschlagen, die Betrugssysteme betreiben, die sich auf Finanzinstitute, insbesondere in den Bereichen Hypothekenbetrug und Banken, auswirken Störungen. Die Mission der AFMLU im Zusammenhang mit dem Finanzinstitut-Betrug (FIF) besteht darin, kriminelle Organisationen und Einzelpersonen durch strategische Verwendung von Vermögensverwüstungen zu identifizieren, zu zielen, zu stören und zu zerlegen und sicherzustellen, dass Außenstellen die Geldwäscheverletzung bei allen Ermittlungen einsetzen Um die Störung und den Abbau von kriminellen Unternehmen zu unterstützen.160 Die AFMLU hat auch die Verantwortung für die Verwaltung des Forfeiture Support Project (FSP) in Calverton, Maryland. Der FSP unterstützt die Verfallungskomponente aller großen FBI-Untersuchungen durch Dateneingabe und - analyse von Finanzdokumenten, forensischer Buchführung und Verfolgungsvermögen, die dem Verfall ausgesetzt sind. Die FAU wurde im März 2009 gegründet, um alle FBI-Untersuchungsfragen zu unterstützen, die eine forensische Finanzuntersuchung erfordern. Die FAU bietet Aufsicht über die Forensic Accountant (FoA) und Financial Analyst (FA) - Programme, so dass die FBI8217s finanzielle investigative Bedürfnisse und Prioritäten kontinuierlich behandelt werden. Schlüssel zur FAU8217s Mission ist die Entwicklung, Verwaltung und Verbesserung der FoA und FA Programme, um sicherzustellen, dass FBI finanzielle investigative Angelegenheiten mit dem hohen Maß an Know-how in einem zunehmend komplexen globalen Finanzsystem erforderlich beschleunigt wird. Die FIC ist eine proaktive Datenverarbeitungseinheit innerhalb der FCS, die im September 2009 erstellt wurde. Sie ist mit einer Kader von Intelligence Analysts (IA) und Personal Operations Specialists (SOS) besetzt. Der FIC bietet eine taktische Analyse von Finanzdatenbanken und - datenbanken, indem er die Technologie - und Datenauswertungstechniken entwickelt, um Zielpakete zu erstellen, um die ungeheuerlichsten kriminellen Unternehmensuntersuchungen zu identifizieren oder zu verbessern. Der FIC hat Verbindungen mit anderen staatlichen und privaten Agenturen aufgebaut, um kriminelle Bedrohungen durch kooperative Bemühungen wirksam anzugehen. Diese Partnerschaften werden zusätzliche Datenquellen identifizieren, die genutzt werden sollen, wodurch der Informationsaustausch mit unseren Partnern erhöht wird. Obwohl die FIC8217 primäre Aufgabe ist, kriminelle Bedrohungen zu identifizieren, ist eine sekundäre Aufgabe, laufende Untersuchungen zu verstärken, die eine große Anzahl von Themen umfassen, die mit Untersuchungen in mehreren Außenstellen verbunden sind. Nationale Prioritäten: Auf der Grundlage der vom Präsidenten, dem Generalstaatsanwalt, dem Direktor und der Abteilung für Kriminalpolizei (CID) durchgeführten FBI-Feldbüro-Bedrohungsstrategien und - richtlinien wurden folgende nationale Prioritäten für das ÖRK-Programm (WCCP ), Korruption im Unternehmen, betrügerische Betrugsfälle (einschließlich Ponzi-Systeme), Betrugsversuche im Gesundheitswesen, FIF (einschließlich Bankversagen und Hypothekenbetrug), Versicherungsbetrug, Geldwäsche und Massenmarktbetrug. Obwohl die öffentliche Korruption eine nationale Priorität innerhalb des WCCP darstellt, wird sie in diesem Bericht nicht behandelt. Jeder Abschnitt dieses Berichts liefert einen Überblick, statistische Errungenschaften und Fallbeispiele der identifizierten prioritären Kriminalitätsprobleme, die speziell durch das FCS angesprochen wurden. Gegebenenfalls werden Vorschläge gemacht, um die Öffentlichkeit vor Betrug durch betrügerische Aktivitäten zu schützen. Als führende Agentur, die Unternehmensbetrug untersucht, konzentrierte sich das FBI auf Fälle, die Buchhaltungsprogramme, Selbstabwicklung von Führungskräften und Behinderung der Justiz beinhalten. Die Mehrzahl der von dem FBI verfolgten betrügerischen Fälle beinhaltet Buchhaltungsprogramme, die dazu dienen, Investoren, Wirtschaftsprüfer und Analysten über die tatsächliche finanzielle Lage einer Körperschaft oder eines Unternehmens zu täuschen. Durch die Manipulation von Finanzdaten, den Aktienkurs oder andere Bewertungsmaßstäbe eines Unternehmens kann die finanzielle Performance künstlich aufgeblasen werden, basierend auf fiktiven Leistungsindikatoren, die dem investierenden Publikum zur Verfügung gestellt werden. Neben beträchtlichen finanziellen Verlusten für Investoren hat Unternehmensbetrug das Potenzial, die US-Wirtschaft und das Vertrauen der Investoren unermesslich zu beeinträchtigen. Während die Zahl der Fälle, in denen die Verfälschung von Finanzinformationen verhältnismäßig stabil ist, das FBI eine Zunahme der Zahl der Insiderhandelsfälle beobachtet hat. Insider-Handel war eine kontinuierliche Bedrohung für den fairen und ordnungsgemäßen Betrieb der US-Finanzmärkte und hat die investierende Öffentlichkeit von einem gewissen Maß an Vertrauen beraubt, dass Märkte fair handeln. Die Verbreitung von materiellen, nichtöffentlichen Informationen, die gemeinhin als Insiderinformationen bezeichnet werden, hat auch Opferinstitutionen, die illegal Zugang zu privilegierten Unternehmensinformationen haben, irreparable Schäden verursacht. Das FBI hat umfangreich mit der US-amerikanischen Securities and Exchange Commission (SEC) zusammengearbeitet, um das weitverbreitete Problem des Insiderhandels, das das gerechte und ordnungsgemäße Funktionieren der Wertpapiermärkte geplagt hat, zu lösen. Darüber hinaus ist die Betrugsbekämpfung von Unternehmen, die Selbstabwicklung von Führungskräften der Unternehmen, insbesondere die Nutzung von Unternehmen, um großflächige, High-Yield-Betrug Systeme zu machen, weiterhin ein Problem der Besorgnis. Traditionell wurden Ponzi-Systeme von Individuen oder kleinen Gruppen innerhalb einer Gemeinschaftsumgebung begangen. Allerdings führte die aktuelle Finanzkrise dazu, dass mehrere große Ponzi-Systeme (z. B. Petters Worldwide Untersuchung) nicht auf einer individuellen Gemeinschaftsebene verübt wurden, sondern auf nationaler Ebene von Führungskräften, die einst als legitime Unternehmen angesehen wurden. Das FBI befasst sich weiterhin intensiv mit Subprime-Kreditinstituten, Maklerhäusern, Wohnungsbaugesellschaften, Hedgefonds und Finanzinstituten8212, bedingt durch die Finanzkrise, die zum Teil durch den Zusammenbruch des Subprime-Hypothekenmarktes im Herbst 2007 verursacht wurde Ein Ergebnis der aktuellen Finanzkrise, wurden Billionen von Dollar in Shareholder Value verloren, mehrere prominente Unternehmen gingen aus dem Geschäft, mehrere prominente Banken scheiterte, und die Bundesregierung über eine Trillion Dollar in Erleichterung, um andere Unternehmen aus dem Versagen zu halten. Ein Subprime-Hypothekenbank ist ein Unternehmen, das Kreditnehmer leiht, die nicht für Darlehen von Mainstream-Kreditgebern zu qualifizieren. Sobald die Subprime-Darlehen ausgegeben wurden, werden sie gebündelt und verkauft als Wertpapiere8212a Prozess bekannt als Verbriefung. Betrug wurde im gesamten Darlehensprozess identifiziert, die mit dem Darlehensnehmer falsche Informationen an den Hypotheken-Broker andor Kreditgeber beginnt beginnt. Die nächste Schicht der potenziellen Betrug8212 der Unternehmensbetrug8212occurs mit den Banken, Maklerhäuser und andere Finanzinstitute, die Kredite durch den Verbriefungsprozess verpacken. Da der Immobilienmarkt sank, Subprime-Kreditgeber wurden gezwungen, wieder eine Reihe von Nonperforming Darlehen. Viele dieser Subprime-Kreditgeber haben auf eine kontinuierliche Steigerung der Immobilienwerte angewiesen, damit die Kreditnehmer zu refinanzieren oder zu verkaufen ihre Eigenschaften, bevor sie in Verzug. Allerdings, basierend auf der Umsatzverlangsamung auf dem Wohnungsmarkt, Kreditausfälle erhöht, der Sekundärmarkt für subprime Wertpapiere geschrumpft, und die Wertpapiere verloren Wert. Infolgedessen sanken öffentlich gehandelte Aktien drastisch, während Finanzinstitute große Verluste aufgrund der subprime Wertpapiere realisierten, die sie hielten oder versicherten, was zu finanziellen Schwierigkeiten und Konkursen führte. Nach einem dramatischen Anstieg der Fälle im Geschäftsjahr 2009 blieb die Zahl der Ermittlungen in der Subprime-Branche in den vergangenen zwei Jahren relativ stabil.160 Da die börsennotierten Gesellschaften aufgrund von Subprime-Marktverlusten finanzielle Schwierigkeiten hatten, haben sich die Analysen der Unternehmensfinanzen identifiziert Fälle falscher Buchungseinträge und betrügerisch überhöhte Vermögenswerte und Umsätze. Untersuchungen haben ergeben, dass mehrere dieser Gesellschaften ihre gemeldeten Kreditportfoliorisiken manipuliert und verschiedene Rechnungsführungssysteme zur Finanzierung ihrer Finanzberichte verwendet haben. Darüber hinaus verkauften Führungskräfte mit Insiderinformationen ihre Eigenkapitalpositionen und nutzten illegal, bevor diese Unternehmen8217 Aktien rasch zurückgingen. Das FBI koordiniert weiterhin mit dem US-Justizministerium (DOJ), der SEC und anderen US-amerikanischen Strafverfolgungs - und Regulierungsbehörden, um mögliche Betrugsfälle zu identifizieren und anzugehen. Unternehmensbetrug bleibt eine der höchsten Prioritäten von CID. At the end of FY 2011, 726 corporate fraud cases were being pursued by FBI field offices throughout the United States, several of which involved losses to public investors that individually exceed 1 billion. Corporate fraud investigations involve the following activities: Falsification of financial information of public and private corporations, including: False accounting entries andor misrepresentations of financial condition Fraudulent trades designed to inflate profit or hide losses and Illicit transactions designed to evade regulatory oversight. Self-dealing by corporate insiders, including: Insider trading8212trading based on material, non-public information8212including, but not limited to: Corporate insiders leaking proprietary information Attorneys involved in merger and acquisition negotiations leaking info Matchmaking firms facilitating information leaks Traders profiting or avoiding losses through trading and160160 Payoffs or bribes in exchange for leaked information. Kickbacks Misuse of corporate property for personal gain and Individual tax violations related to self-dealing. Obstruction of justice designed to conceal any of the above-noted types of criminal conduct, particularly when the obstruction impedes the inquiries of the SEC, other regulatory agencies, andor law enforcement agencies. The FBI has formed partnerships with numerous agencies to capitalize on its expertise in specific areas such as securities, tax, pensions, energy, and commodities. The FBI has placed greater emphasis on investigating allegations of these frauds by working closely with the SEC, Financial Industry Regulation Authority (FINRA), Internal Revenue Service (IRS), Department of Labor, Federal Energy Regulatory Commission, Commodity Futures Trading Commission (CFTC), U. S. Postal Inspection Service (USPIS), and Special Inspector General for the Troubled Asset Relief Program (SIGTARP), among others. In September 2010, the FBI executed a memorandum of understanding with the SEC and placed a supervisory special agent within the SEC8217s Office of Market Intelligence in order to facilitate cooperation in a variety of financial investigations. This assignment has facilitated case referrals between both agencies. In addition, the FBI is an active member of the Financial Fraud Enforcement Task Force (FFETF) created by Presidential Executive Order in November 2009. As reflected in the statistical accomplishments of the FBI, the cooperative and multiagency investigative approach has resulted in highly successful prosecutions.160 The FBI has also worked with numerous organizations in the private industry to increase public awareness about combating corporate fraud, including the Public Company Accounting Oversight Board, American Institute of Certified Public Accountants, Association of Certified Fraud Examiners, and the North American Securities Administrators Association, Inc. These organizations have been able to provide referrals for expert witnesses and other technical assistance regarding accounting and securities issues. In addition, the Financial Crimes Enforcement Network and Dun amp Bradstreet have been able to provide significant background information on subject individuals andor subject companies to further investigative efforts. During FY 2011, cases pursued by the FBI resulted in 242 indictmentsinformations and 241 convictions of corporate criminals. Numerous cases are pending plea agreements and trials. During FY 2011, the FBI secured 2.4 billion in restitution orders and 16.1 million in fines from corporate criminals. The chart below reflects corporate fraud pending cases from FY 2007 through FY 2011. Beazer Homes (Charlotte): A subprime-related corporate fraud investigation conducted by the Charlotte Field Office recently culminated in the trial conviction of the former chief accounting officer of Beazer Homes USA (Beazer). Executives at Beazer, a former Fortune 500 company located in Charlotte, North Carolina, encouraged the use of false information to finance and sell homes and to manipulate corporate earnings to meet specific goals. This manipulation of earnings, referred to as cookie jar accounting, allowed Beazer to reduce its net income during strong financial periods and provide it with excess balances and reserves, allowing it to 8220smooth earnings8221 during times of underperformance. On July 1, 2009, Beazer entered into a deferred prosecution agreement (DPA) acknowledging corporate culpability in this complex fraud scheme. As part of the DPA, Beazer agreed to pay restitution of 50 million and continued to cooperate with the government8217s criminal investigation of former Beazer executives. On October 28, 2011, Michael Rand, the former chief accounting officer of Beazer, was convicted on seven of 11 counts after a three-week trial. Sentencing is planned for 2012. Colonial Bank and Taylor, Bean amp Whitaker (Washington, D. C.): Another notable success was the sentencing of multiple executives from Colonial Bank and Taylor, Bean amp Whitaker (TBW). The Washington Field Office investigated a subprime-related conspiracy committed by senior executives at Colonial Bank and TBW, a major U. S. mortgage originator, who conducted a several-billion-dollar accounting fraud through back-dating of loans and the creation of fictitious loans which inflated loan asset values. Additionally, Colonial Bank fraudulently sought to acquire 553 million in TARP funds, which was prevented by the FBI in conjunction with the SIGTARP. In August 2009, TBW closed after it could no longer issue government-backed loans. In August 2009, the Alabama State Banking Department closed Colonial Bank due to liquidity problems. The failure of Colonial Bank represents the sixth - largest bank failure since the creation of the Federal Deposit Insurance Corporation (FDIC). Colonial Bank8217s former senior vice president, Cathy Kissick, and TBW chief executive officer Paul Allen pled guilty and, in June 2011, were sentenced to eight years and 40 months in prison, respectively. In April 2011, after a 10-day trial, a jury found former TBW chairman Lee Farkas guilty on 14 counts of bank fraud, wire fraud, and securities fraud. Farkas was later sentenced to 30 years8217 imprisonment.160 Galleon Group (New York): The New York Field Office conducted multiple investigations into insider trading. Targets of this investigation included Wall Street analysts and insiders, lawyers, hedge fund analysts and traders, company insiders, and professional consulting firms. Insiders from corporations such as McKinsey amp Company, International Business Machines, Advanced Micro Devices, and Goldman Sachs have been charged for the unauthorized release of proprietary corporate information. The most prominent individual convicted in the investigation to date is Raj Rajaratnam, the founder of the 7 billion Galleon Group hedge fund. Mr. Rajaratnam was convicted in May 2011 by a federal jury on all 14 counts he faced pertaining to his insider trading activity and was subsequently sentenced to 11 years8217 imprisonment. This investigation has shown the FBI8217s propensity to use all tools available at its discretion, including Title IIIs, to combat financial crimes. As of September 30, 2011, 48 convictions have been obtained in this wide-ranging FBI probe into illicit insider trading activity on Wall Street and in the boardrooms across the United States. The continued uncertainty and volatility of today8217s financial markets could be measured by the Dow Jones Industrial Average movement from 12,681 on July 22, 2011, to 10,655 on October 3, 2011. As a result of such tumultuous markets, the FBI witnessed a steady rise in securities and commodities frauds as investors sought alternative investment opportunities. With the development of new schemes and trends8212such as securities market manipulation via cyber intrusion, the increase in commodities fraud, the continued rise of Ponzi schemes, and foreign-based reverse merger market manipulation schemes8212securities and commodities fraud is on the rise. Since 2008, securities and commodities fraud investigations have increased by 52 percent, and the FBI currently has over 1,800 pending investigations. During this period, the losses associated with these types of schemes have increased to billions of dollars. The losses are associated with depreciative market value of businesses, reduced or nonexistent return on investments, and legal and investigative costs. The victims of securities and commodities frauds include individual investors, financial institutions, public and private companies, government entities, pension funds, and retirement funds. The continuing integration of global capital markets has created unprecedented opportunities for U. S. businesses to access capital and investors to diversify their portfolios. Whether through individual brokerage accounts, college savings plans, or retirement accounts (e. g. 401k plans), more and more Americans are choosing to invest in the U. S. securities and commodities markets. This growth has led to a corresponding growth in the amount of fraud and misconduct seen in these markets. The creation of complex investment vehicles and the tremendous increase in the amount of money being invested have created greater opportunities for individuals and businesses to perpetrate fraudulent investment schemes. The recent financial crisis led to the identification of numerous investment fraud schemes, many of which were Ponzi schemes. The number of investment frauds continues to grow as investors remain susceptible in the current uncertainty of the global economy. The securities and commodities frauds being investigated include market manipulation, investment frauds, and miscellaneous matters such as broker embezzlement. In response to this growing threat, the FBI has increased the number of agents addressing it by 61 percent, an increase of approximately 91 agents since 2008. Additionally, the FBI works closely with various governmental and private entities to investigate and prevent fraudulent activity in the financial markets. In an effort to optimize workforce needs, many FBI field offices operate task forces and working groups with other law enforcement and regulatory agencies. These agencies include the SEC, U. S. Attorney8217s Offices (USAO), CFTC, FINRA, USPIS, and the IRS, among others, serving as force multipliers to more effectively address the securities and commodities fraud threat. Nationally, the FBI participates in several working groups and task forces such as the FFETF. The FFETF was established by President Obama to coordinate the efforts of the DOJ at all levels of government to disrupt and dismantle significant large-scale criminal enterprises. Valuable partnerships have been instrumental in orchestrating national financial crimes takedowns, or 8220sweeps,8221 during the last few years. By coordinating fraud cases into a nationwide takedown, the FBI and its partners have raised public awareness of its enforcement efforts and deterred future fraud. Operation Broken Trust (OBT) was a multi-agency national initiative which coordinated the efforts of government agencies against various securities fraud threats. OBT featured criminal, civil, and community outreach components. The sweep targeted individuals and companies who engaged in criminal and civil securities fraud which occurred sometime from August 16, 2010 through December 1, 2010. For the criminal component coordinated by the FBI, this included arrests, complaints, informationsindictments, convictions, sentences, and seizuresforfeitures. The focus of the sweep was schemes to defraud individual investors, affinity fraud, prime bank fraud, commodities frauds, and market manipulation cases such as 8220pump and dump8221 schemes.160 On December 6, 2010, the FFETF-Securities Fraud Working Group held a national press conference to announce the conclusion of OBT. U. S. Attorney General Eric Holder gave remarks on behalf of DOJ. In coordination with the national press conference, local press conferences were held across the country by U. S. attorneys participating in the operation. The operation involved 343 criminal defendants nationwide and more than 120,000 victims with losses attributable to alleged criminal activity of more than 8 billion.160 The following are the most prevalent types of securities and commodities fraud: Investment Fraud: These schemes, sometimes referred to as high yield investment fraud, involve the illegal sale or purported sale of financial instruments. Financial instruments are defined broadly as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument to another entity. These instruments can be a tradable asset of any kind, to include registered securities and commodities and unregistered securities (e. g. a simple promissory note between the fraudster and hisher victim investors). Schemes take on many forms, and perpetrators quickly alter schemes as they are thwarted by law enforcement. The typical investment fraud schemes are characterized by offers of low - or no-risk investments, guaranteed returns, overly consistent returns, complex strategies, or unregistered securities. These schemes often seek to victimize affinity groups8212such as groups with a common religion or ethnicity8212to utilize the common interests to build trust to effectively operate the investment fraud against them. The perpetrators range from professional investment advisers and hedge funds to those trusted and interacted with daily, such as a neighbor or sports coach. The fraudster8217s ability to foster trust makes these schemes so successful, and investors should use scrutiny and gather as much information as possible before entering into any new investment opportunities. Investors can find background information on registered investment advisers at sec. gov and registered brokers and brokerage firms at finra. org. The following are additional definitions of the most common investment fraud scheme variations: Ponzi Schemes: A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi schemes often share common characteristics, such as offering overly consistent returns, unregistered investments, high returns with little or no risk, or secretive or complex strategies. This arrangement gives investors the impression there is a legitimate, money-making enterprise behind the subject8217s story, but in reality, unwitting investors are the only source of funding. Affinity Fraud: Perpetrators of affinity fraud take advantage of the tendency of people to trust others with whom they share similarities8212such as religion or ethnic identity8212to gain their trust and money.160 Pyramid Schemes: In pyramid schemes, as in Ponzi schemes, money collected from new participants is paid to earlier participants. In pyramid schemes, however, participants receive commissions for recruiting new participants into the scheme. Prime Bank Investment Fraud : In these schemes, perpetrators claim to have access to a secret trading program endorsed by large financial institutions such as the Federal Reserve Bank, Treasury Department, World Bank, International Monetary Fund, etc. Perpetrators often claim the unusually high rates of return and low risk are the result of a worldwide 8220secret8221 exchange open only to the world8217s largest financial institutions. Victims are often drawn into prime bank investment frauds because the criminals use sophisticated terms, legal-looking documents, and claim the investments are insured against loss. Advance Fee Fraud: Advance fee schemes require victims to advance relatively small sums of money in the hope of realizing much larger gains. Not all advance fee schemes are investment frauds. In those that are, however, victims are told that in order to have the opportunity to be an investor (in an initial offering of a promising security, investment or commodity, etc.), the victim must first send funds to cover taxes or processing fees, etc. Promissory Notes: These are generally short-term debt instruments issued by little-known or nonexistent companies. The notes typically promise high returns with little or no risk and are typically not registered as securities with the appropriate regulatory agency. Commodities Fraud: Commodities fraud is the sale or purported sale of a commodity through illegal means. Commodities are raw materials or semi-finished goods that are relatively uniform in nature and are sold on an exchange (e. g. gold, pork bellies, orange juice, and coffee). Most commodities frauds involve illicit marketing or trading in commodities futures or options. Perpetrators often offer investment opportunities in the commodities markets that falsely promise high rates of return with little or no risk. Two common types of commodities investment frauds include: Foreign Currency Exchange (Forex) Fraud: The perpetrators of Forex frauds entice individuals into investing in the spot foreign currency market through false claims and high-pressure sales tactics. Foreign currency firms that engage in this type of fraud invest client funds into the Forex market8212not with the intent to conduct a profitable trade for the client, but merely to 8220churn8221 the client8217s account. Churning creates large commission charges benefiting the trading firm. In other Forex frauds, the perpetrator creates artificial account statements that reflect purported investments when, in reality, no such investments have been made. Instead, the money has been diverted for the perpetrator8217s personal use. Precious Metals Fraud: These fraud schemes offer investment opportunities in metals commodities such as rare earth, gold, and silver. The perpetrators of precious metals frauds entice individuals into investing in the commodity through false claims and high-pressure sales tactics. Oftentimes in these frauds, the perpetrators create artificial account statements that reflect purported investments when, in reality, no such investments have been made. Instead, the money has been diverted for the perpetrators8217 personal use. Market Manipulation: These schemes, commonly referred to as 8220pump-and-dumps,8221 are effected by creating artificial buying pressure for a targeted security, generally a low-trading volume issuer in the over-the-counter securities market that is largely controlled by the fraud perpetrators. This artificially increased trading volume has the effect of artificially increasing the price of the targeted security (i. e. the 8220pump8221), which is rapidly sold off into the inflated market for the security by the fraud perpetrators (i. e. the 8220dump8221). These actions result in illicit gains to the perpetrators and losses to innocent third-party investors. Typically, the increased trading volume is generated by inducing unwitting investors to purchase shares of the targeted security through false or deceptive sales practices andor public information releases. A modern variation on these schemes involves largely foreign-based computer criminals gaining unauthorized access and intruding into the online brokerage accounts of unsuspecting victims in the United States. These intruded victim accounts are then used to engage in coordinated online purchases of the targeted security to affect manipulation while the fraud perpetrators sell their preexisting holdings in the targeted security into the inflated market. Broker Embezzlement: These schemes involve illicit and unauthorized actions by brokers to steal directly from their clients. Such schemes may be facilitated by the forging of client documents, doctoring of account statements, unauthorized tradingfunds transfer activities, or other conduct in breach of the broker8217s fiduciary responsibilities to the victim client. Late-Day Trading: These schemes involve the illicit purchase and sale of securities after regular market hours. Such trading is restricted in order to prevent individuals from profiting on market-moving information which is released after the close of regular trading. Unscrupulous traders attempt to illegally exploit such opportunities by buying or selling securities at the market close price, secure in the knowledge that the market-moving information will generate illicit profits at the opening of trading on the following day. As of the end of FY 2011, the FBI was investigating 1,846 cases of securities and commodities fraud and had recorded 520 indictmentsinformations and 394 convictions against this criminal threat. Additional notable accomplishments in FY 2011 include: 8.8 billion in restitution orders 36 million in recoveries 113 million in fines and 751 million in forfeitures. The chart below reflects securities and commodities fraud pending cases from FY 2007 through FY 2011. Joseph Blimline, Provident Royalties (Dallas): This investigation centered on Joseph Blimline, who orchestrated one of North Texas8217 largest oil and gas investment Ponzi schemes, defrauding 7,700 investors of over 485 million. Beginning in 2006, Blimline and others involved at Provident Royalties made false representations and failed to disclose other material facts to their investors. The investors were not told that Blimeline had received millions of dollars in unsecured loans and had been previously charged with securities fraud. Blimline issued approximately 20 oil and gas offerings, raising over several hundred million dollars from investors. Blimline used a significant amount of the money raised in these offerings to purchase oil and gas assets from earlier offerings and to pay dividends to earlier investors to facilitate the scheme. On August 31, 2010, Blimline pled guilty to an information. Blimline is awaiting sentencing in January 2012. AampO Entities (Richmond): AampO originally sold fractionalized, no-risk interests in life insurance policies, primarily to elderly investors, with promised rates of return from 9-15 percent. AampO bank accounts were under the control of the owners of AampO, who diverted more than 50 million for their personal benefit. On September 27, 2011, co-conspirator Chris Allmendinger was sentenced to 45 years8217 imprisonment for his role in the scheme. On September 28, 2011, Adley Adulwahab was sentenced to 60 years8217 imprisonment, which is the second-longest white-collar criminal sentence in the history of the Eastern District of Virginia. As of September 30, 2011, seven subjects have been sentenced to federal prison terms ranging from three years to 60 years for their roles in this Ponzi scheme, which bilked more than 800 investors out of more than 100 million. This case was investigated jointly with the Virginia Financial and Securities Fraud Task Force. Nicholas Cosmo (New York): Nicholas Cosmo was the owner and president of Agape World, Inc. and Agape Merchant Advance LLC (AMA). Cosmo, through Agape and AMA, solicited money from investors purportedly to provide bridge loans to companies. Cosmo and his sales force promised investors returns of 12 to 15 percent per month. The investor funds were ultimately used to pay Cosmo8217s personal expenses, pay back previous investors, and speculate in future contracts. In April 2009, Nicholas Cosmo was indicted on charges of mail fraud in connection with operating a several-hundred-million-dollar Ponzi scheme. On October 14, 2011, Cosmo was sentenced to 25 years in prison. He was also ordered to pay 179 million in restitution to more than 4,000 victims and agreed to an asset forfeiture judgment in the amount of 409,305,000 as part of his sentence. The FBI8217s mission in health care fraud (HCF) is to oversee the FBI8217s HCF initiatives by providing national guidance and assistance to support HCF investigations targeting individuals and organizations who are defrauding the public and private health care systems. The FBI works closely with its federal, state, and local law enforcement partners the Centers for Medicare and Medicaid Services (CMS) and other government and privately sponsored program participants to address vulnerabilities, fraud, and abuse. All health care programs are subject to fraud however, Medicare and Medicaid programs are the most visible. Estimates of fraudulent billings to health care programs, both public and private, are estimated between 3 and 10 percent of total health care expenditures. The fraud schemes are not specific to any area, but they are found throughout the entire country. The schemes target large health care programs, public and private, as well as beneficiaries. Certain schemes tend to be worked more often in certain geographical areas, and certain ethnic or national groups tend to also employ the same fraud schemes. The fraud schemes have, over time, become more sophisticated and complex and are now being perpetrated by more organized crime groups. Emerging Trends and Projections: HCF is expected to continue to rise as people live longer. This increase will produce a greater demand for Medicare benefits. As a result, it is expected that the utilization of long - and short-term care facilities such as skilled nursing, assisted living, and hospice services will expand substantially in the future. Additionally, fraudulent billings and medically unnecessary services billed to health care insurers are prevalent throughout the country. These activities are becoming increasingly complex and can be perpetrated by corporate-driven schemes and systematic abuse by providers. The most recent CMS statistical estimates project that total health care expenditures are estimated to total 2.4 trillion, representing 14 percent of the gross domestic product (GDP). By the year 2016, CMS estimates total health care spending to exceed 4.14 trillion, representing 19.6 percent of the GDP. With health care expenditures consistently increasing, it is especially important to coordinate all investigative efforts to combat fraud within the health care system. The FBI is the primary investigative agency in the fight against HCF and has jurisdiction over both the federal and private insurance programs. With more than 1 trillion being spent in the private sector on health care and its related services, the FBI8217s efforts are crucial to the success of the overall program. The FBI leverages its resources in both the private and public arenas through investigative partnerships with agencies such as the Health and Human Services-Office of Inspector General (HHS-OIG), the Food and Drug Administration (FDA), Drug Enforcement Administration, Defense Criminal Investigative Service, Office of Personnel Management, IRS-CID, and various state and local agencies. On the private side, the FBI is actively involved with national groups such as the National Health Care Anti-Fraud Association and the National Insurance Crime Bureau (NICB), as well as many other professional and grassroots efforts to expose and investigate fraud within the system. Collaboration: In furtherance of the FBI8217s efforts to combat HCF in the United States, the FBI participates in various initiatives with federal, state, and local agencies. At the Headquarters level, the FBI participates in a senior level working group which includes the CMS, DOJ, HHS-OIG, and other agencies to identify and assess health care industry vulnerabilities and make recommendations to protect the industry and the public through a coordinated effort. At the Headquarters level, the FBI is also involved in coordination meetings at the DOJ which include various DOJ components involved in the fight against HCF. National-level liaison is also maintained with federal law enforcement agencies, the National Association of Medicaid Fraud Control Units, and other partners.160 Throughout the country, FBI field offices participate in HCF working groups which involve law enforcement agencies, prosecutors, regulatory agencies, and health insurance industry professionals to identify the various crime problems involving HCF. The FBI develops national and local initiatives when large-scale fraud is detected, which may involve participation by several FBI field offices and other law enforcement agencies. During the past year, the FBI continued to identify and analyze industry fraud trends through input from private and public health care program experts. Present areas of concern include DME hospital fraud physician fraud home health agencies beneficiary-sharing chiropractic, pain management, and associated drug diversion physical therapists prescription drugs multidisciplinary fraud and identity theft which involves physician identifiers used to fraudulently bill government and private insurance programs. As part of our national strategy to address HCF, the FBI cooperates with the DOJ and the various USAOs throughout the country to pursue offenders through parallel criminal and civil remedies. These cases typically target large-scale medical providers, such as hospitals and corporations, who engage in criminal activity and commit fraud against the government which undermines the credibility of the health care system. As a result, a great deal of emphasis is placed on recovering the illegal proceeds through seizure and forfeiture proceedings as well as substantial civil settlements. Upon the successful conviction of HCF offenders, the FBI provides assistance to various regulatory and state agencies, which may seek exclusion of convicted medical providers from further participation in the Medicare and Medicaid health care systems. Data Mining Techniques: The FBI and the health care industry continue to expand their technology and intelligence assessments through the use of sophisticated data-mining techniques to identify patterns of fraud, systemic weaknesses, and aberrant billing activity. In 2005, the FCS developed the Electronic Bank Records Initiative (EBRI). The EBRI was implemented to identify and develop a process for obtaining electronic (digital format) records from financial institutions. Historically, financial institutions have provided paper copies of records to law enforcement when they receive a subpoena from the government. These records are generally maintained by the banks in an electronic format. The time it takes the financial institution to make the copies of the records and for the investigative agencies to return the paper copies back to an electronic format for financial analysis creates a severe negative effect on the timeliness, effectiveness, and efficiency of investigations. In an effort to increase the efficiency of the process, a subpoena attachment was developed by the DOJ, FBI, and IRS-CID for the production of electronic records instead of paper copies. The development included significant coordination with the financial institutions and their associations. The subpoena attachment was not based upon new or expanded laws, regulations, or rules. The attachment is merely meant to standardize and clarify the requests for electronic records according to the current federal rules of criminal and civil procedure. In general terms, if a financial institution maintains records electronically, the requesting agency would be seeking to obtain the records electronically. In addition, the scope of the records requested has not changed due to the subpoena attachment, with the exception of seeking the records electronically. The subpoena attachment was disseminated to FBI offices, IRS offices, and throughout the DOJ in November 2007. The goal of the DOJ, FBI, and IRS-CID is to inform and prepare financial institutions and their respective agencies for the use and response to the subpoena attachment. This includes working with financial institutions during the transition period in coordinating the requests and associated responses to subpoenas. In addition, it is anticipated the EBRI will greatly increase the efficiency of the financial records production process and provide significant costs savings to both the government and private industry. Through FY 2011, 2,690 cases investigated by the FBI resulted in 1,676 informationsindictments and 736 convictions of HCF criminals. It should be noted that numerous cases are pending plea agreements and trials. The following notable statistical accomplishments are reflective in FY 2011 for HCF: 1.2 billion in restitutions 1 billion in fines 96 million in seizures 320 million in civil restitution and over 1 billion in civil settlements. The chart below reflects HCF pending cases from FY 2007 through FY 2011. Glaxosmithkline (GSK) (San Juan): Drugs manufactured at the GSK plant located in Cidra, Puerto Rico were not safe andor effective and, therefore, claims for payment of prescription drugs made by GSK to Medicare, state Medicaid programs, and other state and federal purchasers of prescription drugs were false or fraudulent. GSK is accused of distributing reject drug product to the U. S. market and submitting false claims for drug products that were not safe andor effective. Drugs affected include, but are not limited to, Avandamet, Coreg, Bactroban, Abreva, Cimetidine, and Kytril. GSK allegedly lied to the FDA in order to conceal those violations. GSK8217s violations of current good manufacturing practices include, but are not limited to, product mix-ups inadequate investigation of out-of-specification results detected during laboratory testing inadequate process validation and equipment calibration and substandard quality and control of the plant8217s water systems, resulting in microbial contamination of drug products. On December 26, 2010, GSK pled guilty to charges relating to the manufacture and distribution of certain adulterated drugs. A 600 million civil settlement under the False Claims Act was agreed upon in addition to 150 million in criminal fines and forfeiture. American Therapeutic Corporation (Miami): This matter was initiated by a civil qui tam filed unsealed by a relator. The investigation into American Therapeutic Corporation (ATC) addressed an identified threat of community mental health center fraud within South Florida. ATC has been identified as the largest community medical health center (CMHC) in Florida, and its owners and operators of facilities have submitted approximately 205 million in fraudulent claims to Medicare, with approximately 85 million being reimbursed. ATC owners allegedly have been engaged in widespread fraud and have paid kickbacks to assisted living facilities in order to recruit patients for unnecessary group therapy programs and partial hospitalization programs. This investigation has brought greater awareness to the fraud and abuse of CMHCs within South Florida. Payments to ATC have been suspended, thereby protecting the federal trust fund for Medicare. On September 16, 2011, owner Lawrence Duran was sentenced to 50 years in prison and restitution of 87,533,863. On September 19, 2011, owner Marianella Valera was sentenced to 35 years in prison and restitution of 87,533,863. Over 20 defendants were indicted and arrested as part of the investigation, which was worked jointly by FBI Miami and HHS-OIG, along with trial attorneys from DOJ. HCF is carried out by many segments of the health care system using various methods. Some of the most prevalent schemes include: Billing for Services not Rendered : These schemes can have several meanings and could include any of the following: No medical service of any kind was rendered. The service was not rendered as described in the claim for payment. The service was previously billed and the claim had been paid. Upcoding of Services : This type of scheme involves a billing practice where the health care provider submits a bill using a procedure code that yields a higher payment than the code for the service that was truly rendered. The upcoding of services varies according to the provider type. Examples of service upcoding include: A routine, follow-up doctor8217s office visit being billed as an initial or comprehensive office visit. Group therapy being billed as individual therapy. Unilateral procedures being billed as bilateral procedures. 30-minute sessions being billed as 50 minute sessions. Upcoding of Items: A medical supplier is upcoding when, for example, the supplier delivers to the patient a basic, manually propelled wheelchair, but bills the patient8217s health insurance plan for a more expensive motorized version of the wheelchair. Duplicate Claims : A duplicate claim usually involves a certain item or service for which two claims are filed. In this scheme, an exact copy of the claim is not filed a second time rather, the provider usually changes a portion, most often the date of service on the claim, so that the health insurer will not realize the claim is a duplicate. In other words, the exact claim is not filed twice, but one service is billed two times, in an attempt to be paid twice for one service. Unbundling: This is the practice of submitting bills in a fragmented fashion in order to maximize the reimbursement for various tests or procedures that are required to be billed together at a reduced cost. For example, clinical laboratory tests may be ordered individually, or in a 8220panel8221 (i. e. a lipid panel, an arthritis panel, a hepatitis panel). Billing tests within each panel as though they were done individually on subsequent days is an example of unbundling. Excessive Services: These schemes typically involve the provision of medical services or items which are in excess of the patient8217s actual needs. Examples of excessive services include: A medical supply company delivering and billing for 30 wound care kits per week for a nursing home patient who only requires a change of dressings once per day. Daily medical office visits conducted and billed for when monthly office visits would be more than adequate. Medically Unnecessary Services: A service is medically unnecessary and may give rise to a fraudulent scheme when the service is not justified by the patient8217s medical condition or diagnosis. For example, a claim for payment for an electrocardiogram test may be fraudulent if the patient has no conditions, complaints, or factors which would necessitate the test. Kickbacks: A health care provider or other person engages in an illegal kickback scheme when he or she offers, solicits, pays, or accepts money, or something of value, in exchange for the referral of a patient for health care services that may be paid for by Medicare or Medicaid. A laboratory owner and doctor each violate the Anti-Kickback Statute when the laboratory owner pays the doctor 50 for each Medicare patient a doctor sends to the laboratory for testing. Although kickbacks are often paid in cash based on a percentage of the amount paid by Medicare or Medicaid for a service, kickbacks may take other forms such as jewelry, free paid vacations, or other valuable items. Health Care Fraud Prevention Measures HCF is not a victimless crime. It increases health care costs for everyone. It is as dangerous as identity theft. Fraud has left many thousands of people injured. Participation in HCF is a crime. Keeping America8217s health system free from fraud requires active participation from each of us. The large number of patients, treatments, and complex billing practices attracts criminals skilled in victimizing innocent people by committing fraud. What is Health Care Fraud Altered or fabricated medical bills and other documents. Excessive or unnecessary treatments. Billing schemes, such as: charging for a service more expensive than the one provided. charging for services that were not provided. duplicate charges. False or exaggerated medical disability. Collecting on multiple policies for the same illness or injury. Tips to Protect Yourself Against Health Care Fraud Protect your health insurance information card like a credit card. Beware of free services8212is it too good to be true Review your medical bills, such as your 8220explanation of benefits,8221 after receiving health care services. Check to ensure the dates and services are correct to ensure you get what you paid for. If you suspect HCF, contact your insurance company. You can also contact your local FBI field office andor the local Department of HHS-OIG Office.160 The mission of the Financial Institution Fraud Unit (FIFU) is to oversee the investigation of financial industry fraud schemes perpetrated by individuals, as well as criminal organizations, which target our nation8217s financial institutions.160160 The FIFU protects the public8217s interest by educating individuals and businesses about pervasive financial industry fraud schemes working closely with federal, state, and local law enforcement agencies and maintaining liaison contacts with our regulatory and industry partners. In addition, the FIFU obtains relevant intelligence data to prepare proactive strategies to neutralize current and emerging financial threats. The FIFU has oversight responsibilities of the mortgage fraud, financial institution fraud, credit card fraud, and bankruptcy fraud subprograms. In 2011, mortgage loan originations were at their lowest levels since 2001. This can be partially attributed to tighter underwriting standards following the financial crisis. This decrease in loan originations has resulted in a corresponding decrease in new loan origination fraud investigations. Foreclosures and delinquencies, on the other hand, have skyrocketed over the past few years, with a corresponding increase in mortgage fraud schemes aimed at distressed homeowners. For the first time in recent history, distressed homeowner fraud has displaced loan origination fraud as the number one mortgage fraud threat in many offices. Though the FBI considers loan origination fraud to be the most egregious type of mortgage fraud because of the high dollar losses attendant therewith, the FBI has now adapted its focus to include other new and emerging schemes. Mortgage fraud schemes employ some type of material misstatement, misrepresentation, or omission relating to a real estate transaction which is relied on by one or more parties to the transaction160 These schemes include: Foreclosure rescue schemes Loan modification schemes Illegal property flipping Builder bailoutcondo conversion Equity skimming Silent second Home equity conversion mortgage Commercial real estate loans Air loans Mortgage fraud is a part of the FIF subprogram within the FBI8217s WCCP. The FBI investigates mortgage fraud in two distinct areas: fraud for profit and fraud for housing. Those who commit mortgage fraud for profit are often industry insiders using their specialized knowledge or authority to commit or facilitate the fraud. Current investigations and widespread reporting indicate a high percentage of mortgage fraud involves collusion by industry insiders, such as bank officers, appraisers, mortgage brokers, attorneys, loan originators, and other professionals engaged in the industry. Fraud for housing typically represents illegal actions conducted solely by the borrower, who is motivated to acquire and maintain ownership of a house under false pretenses such as misrepresented income and asset information on a loan application. One of the ways the FBI becomes aware of mortgage fraud is through the analysis of suspicious activity reports (SARs), which are filed by federally insured financial institutions. Mortgage fraud SARs have increased from 6,936 in FY 2003 to 93,508 in FY 2011. These SARs provide valuable intelligence in mortgage fraud trends and can lead to the initiation of mortgage fraud cases as well as the enhancement of current FBI investigations.160 Note: Of those SARs that report a dollar loss, approximately 82 percent do not contain a dollar loss amount. FBI Response: With elevated levels of mortgage fraud, the FBI has continued to dedicate significant resources to the threat. The FBI has increased the number of agents who investigate mortgage fraud cases from 120 special agents in FY 2007 to 325 special agents in FY 2011. FBI pending mortgage fraud cases have increased from 1,199 in FY 2007 to 2,691 in FY 2011, with a peak of 3,129 in FY 2010. The FBI employs advanced andor sophisticated investigative techniques, such as undercover operations and wiretaps, which result in the collection of valuable evidence and provide an opportunity to apprehend criminals in the commission of their crimes. This ultimately reduces the losses to individuals and financial institutions. The FBI has also instituted several intelligence initiatives to support mortgage fraud investigations and has improved law enforcement and industry relationships. The FBI has established methodology to proactively identify potential mortgage fraud targets using tactical analysis coupled with advanced statistical correlations and computer technologies. In September 2009, the FBI established the FIC to provide tactical analysis of intelligence datasets and financial databases. The FIC uses evolving technology and data exploitation techniques to create targeting packages to identify the most egregious criminal enterprises and to enhance current criminal investigations. The FIC has worked jointly with the FIFU to assist the field offices by creating mortgage fraud targeting packages. The FBI continues to enhance liaison partnerships within the mortgage industry and law enforcement to promote mortgage fraud awareness and share intelligence. As part of the effort to address mortgage fraud, the FBI continues to support 25 mortgage fraud task forces and 67 working groups. The FBI also participates in the DOJ National Mortgage Fraud and National Bank Fraud Working Groups, as well as the FFETF. The FFETF8217s mission is to enhance the government8217s effectiveness in sharing information to help prevent and combat financial fraud. FBI personnel routinely participate in various mortgage industry conferences and seminars, including those sponsored by the Mortgage Bankers Association (MBA). Collaborative educational efforts are ongoing to raise public awareness of mortgage fraud schemes through the publication of the annual Mortgage Fraud Report and this report, and through the dissemination of information jointly or between various industry and consumer organizations. Analytic products are routinely distributed to a wide audience, including public and private sector industry partners, the intelligence community, and other federal, state, and local law enforcement partners. In June 2010, Operation Stolen Dreams was the largest collective enforcement effort ever brought to bear in confronting mortgage fraud. This FIFU-led initiative involved 1,517 criminal defendants nationwide, who were allegedly responsible for more than 3 billion in losses. Additionally, the operation resulted in 191 civil enforcement actions and the recovery of more than 196 million. The FBI remains committed to its responsibility to aggressively investigate mortgage fraud, as well as engage with the mortgage industry in identifying fraud trends and educating the public. To maximize current resources, the FBI is relying on intelligence collection and analysis to identify emerging trends and egregious offenders and strong relationships with law enforcement and regulatory agency partners to disrupt and dismantle the criminal organizations and individuals engaging in these fraud schemes. Through FY 2011, FBI investigations resulted in 1,223 informations and indictments and 1,082 convictions of mortgage fraud criminals. The following notable statistical accomplishments are reflective in FY 2011 for mortgage fraud: 1.38 billion in restitutions 116.3 million in fines seizures valued at 15.7 million and 7.33 million in forfeitures. Luis Belevan, The Guardian Group, LLC (Phoenix): Luis Belevan pled guilty in federal court to conspiring to commit wire fraud and mail fraud during the period of 2009 to 2010. Belevan and his co-conspirator were charged with defrauding at least 1,800 local distressed homeowners out of a 1,595 upfront fee for bogus promises of assistance in avoiding home foreclosure. Belevan used false promises on the company8217s website to convince consumers that it could help them save their home if the homeowner paid an upfront fee. The homeowners were never helped, and they were scammed out of their hard-earned money. Belevan generated almost 3 million in funds in just nine months, which he and others used for personal expenses and for other failed ventures. Howard Shmuckler, The Shmuckler Group (Washington, D. C.): From 2009 to 2010, Howard Shmuckler owned and operated a mortgage-rescue business known as The Shmuckler Group (TSG), which claimed to be the 8220largest, most successful group of professionals8230coming together to help home owners keep their homes in a manageable and affordable manner.8221 Operating his business at various times in McLean and Vienna, Virginia, Shmuckler is accused of misrepresenting that TSG had a success rate of 97 percent and falsely portraying himself as an attorney licensed in Virginia. Based on these false representations, clients paid fees ranging from 2,500 to 25,000 to modify the terms of their mortgages. Shmuckler was indicted and is awaiting trial, currently scheduled for early 2012. This case was jointly investigated by the FBI, FDIC-OIG, and SIGTARP. Carl Cole David Crisp (Sacramento): In January 2011, a 56-count indictment was returned against 10 subjects for their roles in a large-scale loan origination scheme. The scheme included approximately 140 fraudulent mortgage transactions on 108 properties with loans totaling 142 million. This investigation was initiated in December 2006. Carl Cole and David Crisp, partners in Crisp and Cole Real Estate (CCRE), utilized CCRE to orchestrate an extensive loan origination mortgage fraud scheme. The scheme involved several mortgage brokers, appraisers, realtors, loan officers, certified public accountants, bankfinancial institution employees, straw buyers, title companies, and builders. Mortgage Fraud Schemes and Trends Foreclosure Rescue Schemes: The perpetrators identify homeowners who are in foreclosure or at risk of defaulting on their mortgage loan. The perpetrators then mislead the homeowners into believing they can save their homes by transferring the deed or putting the property in the name of an investor. The perpetrators profit by selling the property to an investor or straw borrower, creating equity using a fraudulent appraisal, and stealing the seller proceeds or fees paid by the homeowners. The homeowners are sometimes told they can pay rent for at least a year and repurchase the property once their credit has been reestablished. However, the perpetrators fail to make the mortgage payments and usually the property goes into foreclosure. Loan Modification Schemes: Scammers purport to assist homeowners who are delinquent in their mortgage payments and are on the verge of losing their home by offering to renegotiate the terms of the homeowners8217 loan with the lender. The scammers, however, demand large fees up front and often negotiate unfavorable terms for the clients, or do not negotiate at all. Usually, the homeowners ultimately lose their homes. This scheme is similar to a foreclosure rescue scam. Illegal Property Flipping: Property is purchased, falsely appraised at a higher value, and then quickly sold. What makes property flipping illegal is that the appraisal information is fraudulent. The schemes typically involve one or more of the following: fraudulent appraisals falsified loan documentation inflated buyer income or kickbacks to buyers, investors, propertyloan brokers, appraisers, and title company employees.160 Builder BailoutCondo Conversion: Builders facing rising inventory and declining demand for newly constructed homes employ bailout schemes to offset losses. Builders find buyers who obtain loans for the properties. The buyers then allow the properties to go into foreclosure. In a condo-conversion scheme, apartment complexes purchased by developers during a housing boom are converted into condos. When the market declines, developers have excess inventory of units. Developers recruit straw buyers with cash-back incentives and inflate the value of the condos to obtain a larger sales price at closing. In addition to failing to disclose the cash-back incentives to the lender, the straw buyers8217 income and asset information are often inflated in order for them to qualify for properties that they otherwise would be ineligible or unqualified to purchase. Equity Skimming: An investor may use a straw buyer, false income documents, and false credit reports to obtain a mortgage loan in the straw buyer8217s name. Subsequent to closing, the straw buyer signs the property over to the investor in a quit claim deed, which relinquishes all rights to the property and provides no guaranty to title. The investor does not make any mortgage payments and rents the property until foreclosure takes place several months later. Silent Second: The buyer of a property borrows the down payment from the seller through the issuance of a nondisclosed second mortgage. The primary lender believes the borrower has invested his own money in the down payment, when in fact, it is borrowed. The second mortgage may not be recorded to further conceal its status from the primary lender. Home Equity Conversion Mortgage (HECM): A HECM is a reverse mortgage loan product insured by the Federal Housing Administration to borrowers who are 62 years or older, own their own property (or have a small mortgage balance), occupy the property as their primary residence, and participate in HECM counseling. It provides homeowners access to equity in their homes, usually in a lump sum payment. Perpetrators recruit seniors through local churches, investment seminars, and television, radio, billboard, and mailer advertisements. The scammers then obtain a HECM in the name of the recruited homeowner to convert equity in the homes into cash. The scammers keep the cash and pay a fee to the senior citizen or take the full amount unbeknownst to the senior citizen. No loan payment or repayment is required until the borrower no longer uses the house as a primary residence. In the scheme, the appraisals on the home are vastly inflated and the lender does not detect the fraud until the homeowner dies and the true value of the property is discovered. Commercial Real Estate Loans: Owners of distressed commercial real estate obtain financing by creating bogus leases and using these fake leases to exaggerate the building8217s profitability, thus inflating their appraisal values using the income method approach. These false leases and appraisals trick lenders into extending loans to the owner. As cash flows are restricted to the borrower, property repairs are neglected. By the time the commercial loans are in default, the lender is oftentimes left with dilapidated and unusable or difficult-to-rent commercial property. Many of the methods of committing mortgage fraud that are found in residential real estate are also present in commercial loan fraud. Air Loans: This is a nonexistent property loan where there is usually no collateral. Air loans involve brokers who invent borrowers and properties, establish accounts for payments, and maintain custodial accounts for escrows. They may establish an office with a bank of telephones, each one used as the fake employer, appraiser, credit agency, etc. to fraudulently deceive creditors who attempt to verify information on loan applications. For additional information regarding mortgage fraud schemes and trends, please see the FBI Annual Mortgage Fraud Report which can be found at fbi. govstats-servicespublicationsmortgage-fraud-2010 . Mortgage Fraud Prevention Measures Tips to Protect Yourself Against Mortgage Fraud Get referrals for real estate and mortgage professionals. Check the licenses of the industry professionals with state, county, or city regulatory agencies. An outrageous promise of extraordinary profit in a short period of time signals a problem. Be wary of strangers and unsolicited contacts, as well as high-pressure sales techniques. Look at written information, to include recent comparable sales in the area and other documents such as tax assessments to verify the value of the property. Understand what you are signing. If you do not understand, re-read the documents or seek assistance from an attorney or third party who represents your interest. Review the title history of the home you are anticipating to purchase to determine if the property has been sold multiple times within a short period. It could mean that this property has been 8220flipped,8221 and the value falsely inflated. Know and understand the terms of your mortgage. Check your personal information against the information as listed on the loan documents to ensure it is accurate and complete. Never sign any loan documents that contain 8220blanks.8221 This leaves you vulnerable to fraud. Check out the tips on the MBA website at for additional advice on avoiding mortgage fraud. Tips to Protect Yourself Against Mortgage Debt Elimination Schemes Be aware of e-mails or web-based advertisements that promote the elimination of mortgage loans, credit card, and other debts while requesting an up-front fee to prepare documents to satisfy the debt. The documents are typically entitled Declaration of Voidance, Bond for Discharge of Debt, Bill of Exchange, Due Bill, Redemption Certificate, or other similar variations. These documents do not achieve what they purport. There is no easy method to relieve your debts. Borrowers may end up paying thousands of dollars in fees without the elimination or reduction of any debt. Tips to Protect Yourself Against Foreclosure Fraud Schemes Be aware of offers to 8220save8221 homeowners who are at risk of defaulting on loans, or whose houses are already in foreclosure. Seek a qualified credit counselor or attorney to assist. Do not pay advanced fees for promised services. Financial Institution Fraud FIF investigations are among the most demanding, difficult, and time-consuming cases undertaken by law enforcement in the area of white-collar crime. Other than mortgage fraud, areas of primary investigative interest relative to FIF include insider fraud (embezzlement and misapplication), check fraud, counterfeit negotiable instruments, check kiting, and fraud contributing to the failure of financial institutions.160160160 With the onset of the U. S. housing crisis that began in 2007, as well as the global financial crisis, mortgage fraud became a primary focus of the FIFU. Although resources were shifted to combat mortgage fraud, the FBI continues to address other fraud schemes that impact our financial institutions. FIF investigations related to emerging technologies and computer-related banking are taking on added significance among the nation8217s financial institutions. The FBI continues to concentrate its efforts on organized criminal groups involved in FIF. These groups are often involved in the sale and distribution of stolen and counterfeit corporate checks, money orders, payroll checks, credit and debit cards, U. S. Treasury checks, and currency. Furthermore, the groups involved in check and loan fraud schemes are often involved in illegal money laundering activities in an effort to conceal their illegal proceeds. The FBI often utilizes asset forfeiture statutes to seize and forfeit the proceeds of criminal activity. The FBI, USPIS, and the IRS conduct criminal FIF investigations with the goal of disrupting and dismantling organized fraud rings, as well as addressing individuals who continue to manipulate internal controls either alone or in collusion with others. The FBI strongly supports joint investigations to effectively utilize limited resources while strengthening investigations by tapping into each agency8217s expertise. Federal agencies work with state and local law enforcement, regulators, and the financial institution industry to combat this crime problem.160 The FBI fosters relationships and partnerships within the banking industry to promote FIF awareness. To raise awareness and increase accessibility to investigative personnel, the FBI has designated points of contact with relevant groups including the National Bank Fraud Working Group, local bank fraud working groups, and SAR working groups across the nation. Included among these working groups are federal, state, and local law enforcement partners regulatory industry representatives and banking industry representatives.160 During FY 2011, cases pursued by the FBI resulted in 521 informations and indictments, and 429 convictions of FIF criminals. The following are notable statistical accomplishments in FY 2011 for FIF: 1.38 billion in restitutions 116.3 million in fines and seizures valued at 15.7 million. The chart below reflects pending FIF cases from FY 2007 through FY 2011. Anthony Raguz (Cleveland): On September 27, 2011, Anthony Raguz, the former chief operating officer of the St. Paul Croatian Federal Credit Union (FCU), pleaded guilty to six counts, including bank fraud, money laundering, and bank bribery, for his role in one of the largest credit union failures in American history. Raguz issued more than 1,000 fraudulent loans totaling more than 70 million to over 300 account holders in the Albanian and Croatian communities near Cleveland from 2000 to 2010. He accepted more than 1 million worth of bribes, kickbacks, and gifts in exchange for the fraudulent loans. Raguz is one of 16 people charged for their roles in the credit union8217s collapse. The failure of St. Paul Croatian FCU resulted in a 170 million loss to the National Credit Union Share Insurance Fund. Gary Foster (New York): Gary Foster, a former vice president in Citigroup8217s treasury finance department, pleaded guilty on September 6, 2011, to bank fraud stemming from his embezzlement of more than 22 million from Citigroup. Between September 2003 and June 2011, Foster first transferred money from various Citigroup accounts to Citigroup8217s cash account and then wired the money to his personal bank account at another bank. Foster concealed his thefts by making various false accounting entries to create the appearance that the cash account was in balance and by placing a fraudulent contract or deal number in the reference line of the wire transfer instructions to give the appearance the wire transfers were actually in support of an existing Citigroup contract. Foster used the money to buy real estate and luxury automobiles, including a Ferrari and a Maserati. William T. Hernandez (Louisville): On September 20, 2011, William T. Hernandez was sentenced to 41 months in prison and ordered to pay 453,819 in restitution for embezzling money from elderly customers. Between October 2006 and June 2010, Hernandez, who was an investment banker employed by PNC Investments at the time, transferred money from investment accounts maintained with PNC Investments. Hernandez deposited the money into a PNC account, then issued cashier8217s checks for his personal benefit and gain. Hernandez pleaded guilty on June 21, 2011, to two counts of bank fraud.160160160160 Financial Institution Failures The FBI began to track the number of financial institution failure investigations in February 1986. A total of 157 banks failed in 2010, and 85 have failed since January 1, 2011, with the total number reaching 410 closures since 2007. Last year saw the highest number of bank failures since 1992, when 181 institutions closed. By comparison, over 1,000 banks failed between 1987 and 1992, and more than 9,000 failed during the Great Depression, between 1930 and 1933. In addition, there are currently 865 U. S. banks on the Federal Deposit Insurance Corporation (FDIC) 8220problem list8221 as of June 30, 2011. Problem banks account for about 11 percent of all banking institutions. As of October 2011, there were 7,433 FDIC-insured banking institutions with FDIC-insured deposits of almost 9.8 trillion and assets totaling over 13.6 trillion. Of these institutions, about 4,600 are regulated by the FDIC and the remainder are supervised by the Office of the Comptroller of the Currency and the Federal Reserve. In addition, the National Credit Union Administration is charged with supervising the 7,239 active federally insured credit unions. The vast majority of the failed banks have closed as a result of market conditions (e. g. devalued properties) associated with the current financial crisis. Their solvency is usually compromised because of unsafe and unsound banking practices and inappropriate risk management tied to heavy concentration of commercial real estate and acquisition, development, and construction loans. The catalyst for the failure has been the economic climate and not criminal activity. Upon closer inspection of the loan portfolios, however, some level of fraud is usually uncovered in many of the loans. One of the outcomes of the financial crisis that began in 2007 was the failure of the largest number of U. S. banks since the savings and loan crisis of the 1980s. As a result of the nature of this financial crisis, bank failure investigations have been opened at the FBI under a myriad of classifications, such as mortgage fraud, corporate fraud, and bank fraud. Of the 1,719 pending FIF investigations, only 49 cases, or about 2.85 percent, involve criminal activity related to a failed federally insured financial institution.160 Donna Shebetich (Pittsburgh): On October 6, 2010, Donna Shebetich was indicted on five counts of filing false call reports to the FDIC. Shebetich, a former vice president, director, and loan officer at Metropolitan Savings Bank, underreported millions of dollars in delinquent mortgages shortly before the Pittsburgh bank failed and its deposits were taken over by another bank. Shebetich filed five false quarterly reports with the FDIC. In the last report filed in November 2006, three months before the bank failed, she listed 0 in delinquent mortgages, when the bank really had more than 7 million in loans at least 30 days overdue. The bank had roughly 15.8 million in assets in that quarter. Elexa Manos (Pittsburgh): On June 6, 2011, Elexa Manos pleaded guilty to one count of bank fraud in connection with a scheme to steal 4 million from the Dwelling House Savings amp Loan, a historic African-American financial institution founded in the 1890s, causing it to fail. Beginning in about 2006, Manos stumbled upon and then exploited weaknesses in the internal controls of the savings and loan8217s Automated Clearing House (ACH) system. Manos and other individuals she recruited, including her son, withdrew funds from 13 savings accounts via ACH debits or withdrawals. The transactions were fraudulent because the accounts did not have sufficient funds available to cover the amounts being withdrawn, causing the bank to use all of its capital reserves to absorb the losses. The funds were used to pay various vendors and creditors, as well as to fund electronic PayPal accounts. Manos was sentenced to 150 months8217 incarceration and ordered to pay 2.5 million in restitution. Robert E. Maloney, Jr. (Atlanta): On June 22, 2011, Robert E. Maloney, Jr. was indicted in a multi-million-dollar fraud and money laundering conspiracy. This superseding indictment charged Maloney and two former top officers of First City Bank (FCB) of Stockbridge, Georgia with conspiracy to commit bank fraud, bank fraud, and related crimes in connection with misconduct at FCB in the years before the bank8217s seizure by state and federal authorities on March 20, 2009. Maloney assisted Mark Connor, the former bank president, and Clayton Coe, a senior lending officer, with massive insider dealing and fraud that preceded the bank8217s failure. The dollar loss from the fraudulent activity caused FCB to fail and was a contributing factor in the failure of several other Georgia banks. The U. S. insurance industry consists of thousands of companies and collects nearly 1 trillion in premiums each year. The size of the industry, unfortunately, makes it a prime target for criminal activity. The Coalition Against Insurance Fraud (CAIF) estimates that the cost of fraud in the industry is as high as 80 billion each year.160 This cost is passed on to consumers in the form of higher premiums. The FBI continues to identify the most prevalent schemes and the top echelon criminals defrauding the insurance industry in an effort to reduce insurance fraud. The FBI works closely with the National Association of Insurance Commissioners, the NICB, the CAIF, as well as state fraud bureaus, state insurance regulators, and other federal agencies to combat insurance fraud. In addition, the FBI is a member of the International Association of Insurance Fraud Agencies, an international nonprofit organization whose mission is to maintain an international presence to address insurance and insurance-related financial crimes on a global basis.160 With the cooperation of the insurance industry, through referrals from industry liaison and other law enforcement agencies, the FBI continues to target the individuals and organizations committing insurance fraud. The FBI continues to initiate and conduct traditional investigations as well as utilize sophisticated techniques, to include undercover investigations, to apprehend the fraudsters. Currently, the FBI is focusing a majority of its resources relating to insurance fraud on the following schemes: Premium DiversionUnauthorized Entities: The most common type of fraud involves insurance agents and brokers diverting policyholder premiums for their own benefit. There are a growing number of unauthorized and unregistered entities engaged in the sale of insurance-related products. As the insurance industry becomes open to foreign players, regulation becomes more difficult. Additionally, exponentially rising insurance costs in certain areas (i. e. terrorism insurance, directors8217officers8217 insurance, and corporations) increase the possibility for this type of fraud. Insurance-Related Corporate Fraud: Although corporate fraud is not unique to any particular industry, there have been instances involving insurance companies caught in the web of these schemes. The temptations for fraud within the insurance industry can be greater during periods of financial downturns. Insurance companies hold customer premiums, which are forbidden from operational use by the company. However, when funding is needed, unscrupulous executives invade the premium accounts in order to pay corporate expenses. This leads to financial statement fraud because the company is required to 8220cover its tracks8221 to conceal the improper utilization of customer premium funds. Viatical Settlement Fraud: A viatical settlement is a discounted, pre-death sale of an existing life insurance policy on the life of a person known to have a terminal condition. The parties to a viatical settlement include the insured party, insurance agentbroker, insurance company, viatical companybroker, and the investor. Viatical settlement fraud occurs when misrepresentations are made on the insurance policy applications, in effect hiding the fact that the party applying for a policy has already been diagnosed with a terminal condition. Additionally, fraud occurs when misrepresentations are made to the investors by the viatical companies about life expectancies of insured parties and guaranteed high rates of return. Workers8217 Compensation Fraud: The Professional Employer Organization (PEO) industry operates chiefly to provide workers8217 compensation insurance coverage to small businesses by pooling businesses together to obtain reasonable rates. Workers8217 compensation insurance accounts for as much as 46 percent of small business owners8217 general operating expenses. Due to this, small business owners have an incentive to shop workers8217 compensation insurance on a regular basis. This has made it ripe for entities that purport to provide workers8217 compensation insurance to enter the marketplace, offer reduced premium rates, and misappropriate funds without providing insurance. The focus of these investigations is on allegations that numerous entities within the PEO industry are selling unauthorized and non-admitted workers8217 compensation coverage to businesses across the United States. This insurance fraud scheme has left injured and deceased victims without workers8217 compensation coverage to pay their medical bills. Disaster Fraud: When a disaster occurs, there are often individuals who seek to profit via false claims of damages. Additionally, there are also non-insurance-related disaster frauds as many organizations and individuals solicit contributions for the victims of the disaster. Most of the organizations and individuals involved are legitimate however, there are some who are not. Victims may be approached through unsolicited e-mails asking for donations to a legitimate-sounding organization. The schemer will instruct the victim to send a donation via a money transfer. Following the 2005 Hurricanes Katrina, Rita and Wilma, billions of dollars in federal disaster relief poured into the Gulf Coast region. In order to screen, de-conflict, and refer reports of fraud to law enforcement, DOJ established the National Center for Disaster Fraud (NCDF) for individuals to report suspected fraud related to any type of disaster relief. The FBI and the NCDF have established a 24-hour hotline that the public can contact in order to report suspected scams andor fraud associated with disaster relief such as the BP oil spill relief effort. The public can report suspicious activity by telephone at (866) 720-5721 or by e-mail at disasterleo. gov .160160 Staged Auto Accidents: Perpetrators of staged auto accidents will either stage an accident with co-conspirators or maneuver innocent motorists into accidents. Although the resulting property damage may be small, the perpetrators make large8212and illegal8212claims for fake injuries and property damage. This type of fraud results in higher insurance premiums for all drivers. In some cases, innocent victims have been killed or injured in a staged auto accident gone wrong. Property Insurance Fraud: Perpetrators of property insurance fraud seek to obtain payment that is higher than the value of the property damaged or destroyed, or intentionally destroy property that could not be sold. Common examples include arson, scuttling of boats, and the ditching of vehicles in lakes or canals. During FY 2011, 140 cases investigated by the FBI resulted in 19 indictmentsinformations, 13 arrests, and 21 convictions of insurance fraud criminals. In addition, the FBI obtained 87.6 million in restitutions in FY 2011 for insurance fraud. Although the FBI has focused its efforts on higher priority WCC matters, insurance fraud investigations continue to be important and are often addressed utilizing liaison efforts in conjunction with other federal, state, and local law enforcement. The chart below reflects insurance fraud pending cases from FY 2007 through FY 2011. Ronald Allen (Newark): On July 26, 2011, Ronald Allen was sentenced to 70 months in prison for diverting policyholder premiums for his own benefit. Allen, along with a number of co-conspirators, sold insurance liability policies to high-risk business such as restaurants and bars. Premiums were diverted and legitimate insurance policies were never issued. A number of businesses that thought they had insurance had claims filed against them. It could cost the businesses millions of dollars to cover claims that they thought were covered by the fictitious insurance policies. The aforementioned premium diversion insurance fraud is the most common type of insurance fraud that is reported to the FBI. Mass marketing fraud is a general term for frauds which exploit mass-communication media, such as telemarketing, mass mailings, and the Internet. Since the 1930s, mass marketing has been a widely accepted and exercised practice. Advances in telecommunications and financial services technologies have further served to spur growth in mass marketing, both for legitimate business purposes as well as for the perpetration of consumer frauds. They share a common theme: the use of false andor deceptive representations to induce potential victims to make advance fee-type payments to fraud perpetrators. Although there are no comprehensive statistics on the subject, it is estimated mass marketing frauds victimize millions of Americans each year and generate losses in the hundreds of millions of dollars. The following is a brief description of some of the key concepts and schemes associated with the mass marketingadvance fee fraud crime problem. Advance Fee Fraud: This category of fraud encompasses a broad variety of schemes which are designed to induce their victims into remitting upfront payments in exchange for the promise of goods, services, andor prizes. Some of the most prevalent schemes being encountered are the following: Nigerian Letter Fraud : Victims are contacted regarding substantial sums of money held in foreign accounts and are requested to pay various fees to secure their transfer to the United States in exchange for a portion of the total proceeds. Alternatively, victims are asked to act as a U. S. agent in securing the release of such funds and are provided with counterfeit instruments which are to be cashed in order to pay any required fees, only to discover they must reimburse their financial institution for cashing a counterfeit instrument. A variation of this fraud involves the use of fraudulent websites which have been created to resemble website pages of legitimate financial institutions to enhance the scheme8217s credibility and swindle greater amounts of money from victims. The victims are directed to open accounts at the fictitious banks8217 websites into which the perpetrators transfer the victims8217 funds. Victims cannot withdraw or transfer the funds when they log on to the fictitious bank websites and are prompted to pay additional taxes or fees before the funds can be released. The funds are never released. Foreign LotterySweepstakes Fraud: Victims are informed they have won a substantial prize in a foreign drawing, but must remit payment for various taxesfees to receive their winnings. Alternatively, victims are provided with counterfeit instruments, representing a portion of the winnings, which are to be cashed in order to pay the required fees, only to discover they must reimburse their financial institution for cashing a counterfeit instrument. Overpayment Fraud: Victims who have advertised some item for sale are contacted by buyers who remit counterfeit instruments, in excess of the purchase price, for payment. The victims are told to cash the payments, deduct any expenses, and return or forward the excess funds to an individual identified by the buyer, only to discover they must reimburse their financial institution for cashing a counterfeit instrument. RecoveryImpersonation Schemes: Victims are contacted by perpetrators posing as law enforcement officers, government employees, or lawyers to inform victims that the persons responsible for the original fraud schemes have been arrested or successfully sued and their bank accounts have been seized. The victims are told the seized money is going to be returned to the victims, but the victims must first pay fees for processing and administrative services. Recovery pitches often target victims many months or years after the original fraud schemes. The predominantly transnational nature of the mass marketing fraud crime problem presents significant impediments to effective investigation by any single agency or national jurisdiction. Typically, victims will reside in one or more countries, perpetrators will operate from another, and the financialmoney services infrastructure of numerous additional countries are utilized for the rapid movement and laundering of funds. For these reasons, the FBI is uniquely positioned to assist in the investigation of these frauds through its network of legal attach233 (legat) offices located in over 60 U. S. Embassies around the world. By leveraging its global presence and network of liaison contacts, the FBI has successfully cooperated with other domestic and foreign law enforcement agencies to combat, disrupt, and dismantle international mass marketing fraud groups. The FBI participates in the International Mass Marketing Fraud Working Group (IMMFWG), a multi-agency working group established to facilitate the multi-national exchange of information and intelligence, the coordination of cross-border operational matters, and the enhancement of public awareness of international mass marketing fraud schemes. The current membership of the IMMFWG consists of law enforcement, regulatory, and consumer protection agencies from seven countries, including Australia, Belgium, Canada, the Netherlands, Nigeria, the United Kingdom, and the United States. Despite the best interagency enforcement efforts to combat mass marketing fraud, the FBI remains cognizant of the fact that the only enduring remedy for this crime problem lies in consumer education and fraud prevention programs. Toward this end, the FBI has not only produced its own mass marketing fraud prevention materials, but coordinates on other public information efforts with the DOJ, FTC, and the USPIS, among others. The FBI also supports a consumer fraud prevention website in conjunction with the USPIS which can be located on the web at: Additionally, further information on mass marketing fraud schemes can be found at fbi. gov. ftc. gov , ic3.gov. and stopfraud. gov .160 As of the end of FY 2011, the FBI was investigating 96 cases of mass marketing fraud and, during FY 2011, recorded multiple indictments and convictions. Although the FBI has focused its efforts on higher-priority financial crime matters, mass marketing fraud investigations continue to be addressed utilizing liaison efforts in conjunction with other federal, state, and local law enforcement agencies and the IMMFWG. The chart below reflects mass marketing fraud pending cases from FY 2007 through FY 2011. Foreign LotterySweepstakes Fraud (New York): This investigation centered on the activities of Israel-based telemarketing con men that pitched winnings in an international lottery sweepstakes primarily to elderly American victims. The victims were informed they won the lottery, but first had to send over payment to cover taxes and fees to have the money released and sent to their account. However, there was no lottery and the perpetrators would just keep the funds for personal use and continue to try to solicit victims for additional fees and taxes to release their alleged winnings. A total of nine subjects were charged, and seven of the subjects, all Israeli nationals, were extradited to the United States and sentenced to prison terms that ranged from 33 months to nine years. This is the largest number of Israeli citizens ever extradited to a foreign country in a single case. This investigation was extremely successful in large part due to the FBI8217s continued use of sophisticated investigative techniques to address financial crimes and the outstanding cooperation and assistance provided by the Tel Aviv Fraud Division of the Israel National Police. Total victim losses were approximately 2 million. Foreign LotterySweepstakes Fraud (Los Angeles): This investigation centered on the activities of Vancouver, Canada-based telemarketing businesses that pitched European prize bonds to primarily elderly Americans. These companies promised victims that their money would be pooled and used to purchase lottery tickets, that the victims had a very good chance of winning money, or that the victims had actually won a large sum of money. Fraudsters also told victims their money would buy a bond and their investments were guaranteed, meaning they could obtain refunds of their initial investments after a short period of time. However, the victims8217 money was never used to provide any benefit to victims, and none of the victims ever received any substantial payment from the fraudulent companies. Approximately 4,500 individuals, mostly elderly, were victimized by this scheme. The main subject was sentenced to nine years in prison and ordered to repay victims 4.76 million. This case was investigated by FBI Los Angeles, in conjunction with the USPIS, FTC, and the Royal Canadian Mounted Police. Foreign LotterySweepstakes Fraud (Los Angeles): This investigation centered on the activities of several lottery companies based in London, England. Using phone calls, letters, and e-mails, subjects contacted potential victims, telling them they had won a lottery prize. However, to collect the winnings, victims had to call telemarketers in Spain or England, who told the victims they had to pay taxes or other fees to receive prizes that never materialized. Approximately 52 victims, primarily elderly, were defrauded out of more than 2.7 million. Victims were from around the world, including the United States and the United Arab Emirates. The main subject was sentenced to 14 years in prison160 This case was investigated by FBI Los Angeles and the Metropolitan Police Service in London. Tips to Protect Yourself Against Mass Marketing Fraud Things You Should Do: Insist on learning the full name, address, and contact information for any company soliciting your business, personal information, or assistance. Insist that all solicitors send materials to you in writing so that you are able to study the full details of the offer, as well as any guarantees andor refund policies. Research all solicitors through the Better Business Bureau, state attorney general8217s office, andor consumer protection service in the state or city where the company is located. Prior to making any significant financial decisions, consult a family member, friend, your attorney, accountant, andor other trusted advisor for an objective opinion. To stop receiving telephone solicitations, instruct solicitors to delete your contact information from all call lists and register with the FTC8217s 8220Do Not Call8221 Registry. Report suspicious telemarketing calls, mail solicitations, or advertisements to the FTC at 182098778209FTC8209HELP or online at ftc. gov . Things You Should NOT Do: Do not make any payments to either secure a prize or improve your chances of winning a prize. Do not be intimidated into making hasty financial decisions by high-pressure sales tactics. Do not provide anyone with your sensitive personal or financial information unless: it is to an entity whose legitimacy is personally known to you, and you personally initiated the contact with the entity. Do not send funds via wire or electronic money transfer services unless: it is to an entity whose legitimacy is personally known to you, and you personally initiated the contact with the entity. Do not deposit checks and wire back any fees using the check proceeds until the checks have fully cleared. It is common for a fraudster to send a check to victims with a requirement that a portion of the check be returned to the fraudster (e. g. wire back taxes on winnings using part of the check or wiring back excess amount received for something you were selling). Do not be lured by offers that are simply too good to be true. they almost certainly are. Asset ForfeitureMoney Laundering The mission of the Asset ForfeitureMoney Laundering Unit (AFMLU) is to promote the strategic use of asset forfeiture and to ensure field offices employ the money laundering violation in all investigations, where appropriate, to disrupt andor dismantle criminal enterprises. The asset forfeiture and money laundering process identifies, targets, disrupts, and dismantles criminal and terrorist organizations and individuals engaged in fraud schemes which target our nation8217s financial infrastructure. The implementation of the asset forfeiture process to criminal investigations provides law enforcement with the opportunity to deprive wrongdoers of the proceeds of their crimes, recover property that may be used to compensate victims, and deter future criminal activity. The asset forfeiture process can destroy the financial infrastructure of criminal enterprises, return funds to victims of large-scale fraud, and share forfeited property with state and local law enforcement agencies. The AF program and the ML program provide support to all FBI investigative programs, to include the international and domestic terrorism programs. The DOJ defines money laundering in the following manner: 8220Money laundering is the process by which criminals conceal or disguise the proceeds of their crimes or convert those proceeds into goods and services. It allows criminals to infuse their illegal money into the stream of commerce, thus corrupting financial institutions and the money supply, thereby giving criminals unwarranted economic power.8221 The FBI maintains a proactive approach when investigating money laundering. After identifying a specified unlawful activity that generates illicit proceeds, a parallel financial investigation is conducted in order to locate the proceeds and prove their connection to the underlying crime. The FBI8217s AF program is one of the most successful in all of law enforcement. In the WCCP, the bulk of the monies seized are returned to victims of the frauds that generated them. This is unique to the FBI and some other agencies. Most people associate the seizure and forfeiture of assets with narcotics trafficking. Although the FBI does seize assets from drug dealers and other criminals, the WCCP is the largest contributor to the FBI8217s forfeiture program. Through FY 2011, 303 cases investigated by the FBI resulted in 37 indictments and 45 convictions of money laundering fraud criminals. For FY 2011, the following money laundering accomplishments were achieved for the WCCP: 18.4 million in restitutions 809,414 in recoveries and 983,536 in fines. The chart below reflects pending money laundering cases from FY 2007 through FY 2011 Barclays (New York): On August 16, 2010, Barclays Bank entered into a deferred prosecution agreement waiving indictment and the filing of a two-count criminal information charging violations of Title 50, United States Code (USC), Section 1705, the International Emergency Economic Powers Act (IEEPA) and Title 50, USC, Section 5 amp 16, Trading With the Enemy Act (TWEA). Under IEEPA and TWEA, it is a crime to willfully violate or attempt to violate any regulation issued under the act, including those related to Cuba, Iran, Libya, Sudan, and Burma. The IEEPA and TWEA regulations are administered by the Office of Foreign Assets Control (OFAC). This investigation resulted in the forfeiture of 298 million.160 Credit Suisse (New York): On December 16, 2009, Credit Suisse entered into a deferred prosecution agreement waiving indictment and the filing of a one-count criminal information in violation of Title 50, USC, Section 1705, the IEEPA. The violations relate to transactions Credit Suisse illegally conducted on behalf of customers from Iran, Sudan, and other countries sanctioned in programs administered by the Department of the Treasury8217s OFAC. This investigation resulted in the forfeiture of 536 million, which was the largest forfeiture ever received for this type of violation. The Forensic Accountant Unit (FAU) was established in March 2009 to support all FBI investigative matters requiring a forensic financial investigation. The FAU provides oversight of the forensic accountant (FoA) and financial analyst (FA) programs, ensuring that the FBI8217s financial investigative needs and priorities are continuously addressed. Key to the FAU8217s mission is developing, managing, and enhancing the FoA and FA programs, to ensure that FBI financial investigative matters are expedited with the high-level of expertise required in an increasingly complex global financial system. The forensic accountant program (FAP) is the culmination of years of effort to advance and professionalize the FBI8217s financial investigative capabilities. The FoA position was developed to attract and retain top-tier accounting professionals who possess the ability to conduct complex and thorough forensic financial investigations. The FBI8217s FoAs are expected to testify as expert witnesses in judicial proceedings after completing the financial investigative portion of complex investigations.160 The mission of the FAU is to support all FBI investigative matters requiring a forensic financial investigation and to ensure the FBI8217s financial investigative priorities are continually addressed.160The FAU seeks to provide the highest caliber of financial investigative work product and support as well as contributing to the FBI8217s intelligence cycle. The FAU continues to develop and implement a rigorous training curriculum and is collaborating with an array of public and private organizations in an effort to cultivate a workforce that provides superior results both in the field offices and at FBI Headquarters. Forensic Accountant Support Team: The Forensic Accountant Support Team (FAST) is stationed within the FAU, enabling the FBI to quickly respond to significant, high-profile investigations and augment field office resources to notably advance an investigation. This professional support workforce is an asset to all FBI investigative programs and enables the FBI to more efficiently and effectively conduct complex investigations requiring a thorough forensic financial review. The seven members of the FAST have worked a number of priority investigations during FY 2011 across a variety of investigative matters. Forensic Accountant Core Training Session Training Course: The Forensic Accountant Core Training Session (FACTS) is a rigorous, comprehensive introductory program of instruction designed to increase an FoA8217s proficiency in the critical areas necessary to conduct a financial investigation. This extensive course develops the FoA8217s aptitude and knowledge in handling a financial investigation according to pertinent rules and regulations across a wide variety of subject matters. The material covered focuses primarily on providing an overview of FBI programs and systems, financial investigative topics and techniques, resources available to develop an investigation, legal training, and expert witness-testifying techniques. During FY 2011, the FAU held three courses with a total of 128 graduates. BankScan Initiative: BankScan is an in-house-created software application which translates physical bank and credit card statements into an electronic medium, thus dramatically decreasing the time-consuming data-entry process. In FY 2011, the FAU provided BankScan training to three FACTS classes, three field offices, and the Terrorism Financing Operations Section at FBI Headquarters. Each field office was supplied with the necessary software and equipment to implement the BankScan project. Since its implementation, the FBI has benefited through an exponential increase in financial investigative efficiency and productivity. Through the third quarter of FY 2011, an estimated 4,270 days (11.7 years) of time has been saved by using BankScan. Electronic Subpoena Production: The Electronic Subpoena Production initiative represents a joint undertaking of the FBI8217s CID, DOJ8217s Criminal Division Fraud Section, and the IRS. Electronic Subpoena Production requires financial institutions to digitally produce account data stored electronically by relying on existing Rule 17 of the federal rules of criminal procedure and the updated Federal Reserve Regulation S (effective January 1, 2010). When used in conjunction with BankScan, the introduction of this new process will substantially increase the efficiency and effectiveness of FBI forensic financial investigations. Financial Analyst Conversion: In FY 2011, the FAU began the second phase of the selective conversion process to transition qualified FAs to the FAP to provide the FBI8217s investigative programs with the highest caliber of financial investigative work product and support. This effort ensures only those individuals satisfying the FoA requirements convert to the FAP. The second phase of the conversion will be completed during the early part of FY 2012. Financial Investigative Report: The FAU deployed the Financial Investigative Report (FIR) template in FY 2011. The purpose of the FIR is to provide FAs and FoAs a standardized organizational tool that consistently presents financial investigative analysis, notes, and details to case agents (CAs) and assistant U. S. attorneys (AUSAs). The intended result is to create high-quality, uniform reporting that meets or exceeds the standards set by the Ca, AUSA, and the FAP. The FAP provided substantial support to the following major cases: Fair Finance : Timothy Durham, James Cochran, and Rick Snow were indicted and charged with wire fraud, securities fraud, and conspiracy to commit securities fraud for allegedly committing a scheme to defraud the investors of Fair Finance. Fair Finance was a privately-held niche lender that specialized in account receivables management and financing consumer installment sales contracts. It is alleged in the indictment that over the last several years, Durham, Cochran, and Snow used Fair Finance investor money to finance other business operations and lifestyle expenditures, unbeknownst to investors. There are over 5,000 victim-investors totaling approximately 200 million in loss. Trial is scheduled for June 2012. Galleon Group: Raj Rajaratnam was recently found guilty in Manhattan by a jury in federal court of conspiracy and securities fraud crimes stemming from his involvement in the largest hedge fund insider trading scheme in history. Rajaratnam was the Managing Member of Galleon Management, LLC (8220Galleon8221), the General Partner of Galleon Management, L. P. and a portfolio manager for Galleon Technology Offshore, Ltd. and certain accounts of Galleon Diversified Fund, Ltd. He was convicted on all 14 counts after an eight-week trial and sentenced to 11 years8217 incarceration. American Therapeutic Corporation (ATC) : Lawrence Duran, Marianella Valera, and others pled guilty to their roles in a scheme to submit more than 200 million of fraudulent claims to Medicare. The scheme was orchestrated by the above owners and operators of American Therapeutic Corporation (ATC) its management company, Medlink Professional Management Group Inc. and the American Sleep Institute (ASI). ATC8217s owners and operators paid kickbacks to owners and operators of assisted living facilities and halfway houses and to patient brokers in exchange for delivering ineligible patients to ATC and ASI. Throughout the course of the ATC and ASI conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries who did not qualify for partial hospitalization program services. Lawrence Duran was sentenced to 50 years in prison for his role in the Medicare fraud scheme and was ordered to pay more than 87 million in restitution, jointly and severally with the co-defendants. Duran8217s sentence is the longest prison sentence ever imposed in a Medicare Fraud Strike Force case. Marianella Valera was sentenced to 35 years in prison and ordered to pay restitution. Margarita Acevedo, a cooperating witness, was sentenced to seven-and-a-half years in prison and was ordered to pay 72.7 million in restitution. Alan Gumer, MD Adrianna Mejia James Edwards Joseph Valdes and Nelson Fernandez also pled guilty to their roles in the fraud scheme, but have yet to be sentenced. Sentencing for these individuals is scheduled for January 2012. Financial Intelligence Center The Financial Intelligence Center (FIC) is a proactive data exploitation unit within the FCS, created in September 2009. It is staffed with a cadre of intelligence analysts (IA) and staff operations specialists (SOS). The FIC8217s mission is to provide tactical analysis of financial intelligence datasets and databases by using evolving technology and data exploitation techniques identify potential criminal enterprises and enhance investigations. Additionally, the FIC has established liaison relationships with other government and regulatory agencies to identify additional data sources to disrupt and dismantle criminal enterprises and others and increase information sharing. The FIC supports the following WCC subprograms: Financial institution fraud (including mortgage fraud) Securitiescommodities fraud Public corruption Fraud against government Health care fraud Money laundering and other crimes The FIC reviews large datasets to identify potential new targets for investigation (see examples below). Once a potential target is identified, the FIC conducts research using various internal databases and a myriad of external databases such as Lexis Nexis, Dun amp Bradstreet, CLEAR, and Public Access to Court Electronic Records and data provided by other agencies including the SEC, HHS, FINRA, and the DOJ. The information is then organized using Excel spreadsheets and link chart analyses to 8220connect the dots8221 of all the key players. The results of the research and analysis are then summarized and referred to the appropriate field office in the form of a targeting package for their discretion in opening an investigation. Securities and Futures SAR Review Project: Analysts who support the securitiescommodities fraud program review securities and futures SARs using defined parameters to identify potential subjects. They then perform preliminary research to determine if the subjects are valid targets to disseminate to the appropriate FBI field office. Public Corruption Economic Stimulus Project: Analysts who support the public corruption and fraud against the government programs research the American Recovery and Reinvestment Act funding distribution to identify vulnerabilities for fraud and prepare targeting packages to disseminate to the appropriate FBI field offices for review and potential case initiation. Health Care Fraud Prevention and Enforcement Action Team Project: Analysts who support the HCF program work with HHS-OIG in collaborative data sharing to identify providers of medical equipment and services engaged in HCF. The FIC performs a detailed analysis of the identified providers and formulates a targeting package that is presented to the applicable field office for review and potential case initiation.160 Health Care Fraud SAR Review Project: Analysts who support the HCF program review SARs to identify physicians engaged in HCF. The FIC performs a detailed analysis of the potential physicians and formulates a targeting package that is presented to the applicable field office for review and potential case initiation.160 Commercial Real Estate Loan SAR Project: Analysts who support the FIF subprogram review SARs that reference commercial real estate loans to identify potential targets. After further research, targeting packages are disseminated to the appropriate FBI field offices for review and potential case initiation. FDIC Referrals Initiative: Analysts who support the FIF subprogram, in conjunction with the FIFU, conduct reviews of the FDIC8217s failed loans issued by various lending institutions to identify current indicators of potential fraudulent activity. The data collected from the loan files is compared to various databases to identify subjects worthy of targeting packages. Once the targeting packages are prepared, they are presented to the applicable field offices for review and potential case initiation. Money Laundering National SAR Review Project: Analysts who support the ML program use this initiative, sponsored by the DOJ, to target money laundering activity with an international nexus. Analysts utilize multi-agency resources to review SARs that have the potential for case initiation. The FIC performs a detailed analysis of the potential cases and formulates a targeting package that is presented to the applicable field office for review and potential case initiation.160 Asset ForfeitureMoney Laundering Unit Agape Merchant Advance, LLC Assistant United States Attorney Case Agent Coalition Against Insurance Fraud Commodities Futures Trading Commission Criminal Investigative Division Community Medical Health Center Centers for Medicare and Medicaid Services Durable Medical Equipment Department of Justice Deferred Prosecution Agreement Electronic Bank Records Initiative Economic Crimes Unit Financial Analyst Forensic Accountant Core Training Session Forensic Accountant Program Forensic Accountant Support Team Forensic Accountant Unit Federal Bureau of Investigation First City Bank Financial Crimes Section Federal Deposit Insurance Corporation Food and Drug Administration Financial Fraud Enforcement Task Force Financial Intelligence Center Financial Institution Fraud Financial Institution Fraud Unit Financial Industry Regulation Authority Financial Investigative Report Forensic Accountant Foreign Currency Exchange Forfeiture Support Project Federal Trade Commission Fiscal Year Gross Domestic Product Glaxosmithkline Health Care Fraud Health Care Fraud Unit Home Equity Conversion Mortgage Health and Human Services-Office of Inspector General Intelligence Analyst International Emergency Economic Powers Act International Mass Marketing Fraud Working Group Internal Revenue Service Legal Attach233 Mortgage Bankers Association Money Laundering National Center for Disaster Fraud National Health Care Anti8209Fraud Association National Insurance Crime Bureau Operation Broken Trust Office of Foreign Assets Control Office of Inspector General Professional Employer Organization Suspicious Activity Reports Securities and Exchange Commission Special Inspector General for the Troubled Asset Relief Program Staff Operations Specialist Taylor, Bean amp Whitaker Trading With the Enemy Act U. S. Attorney8217s Office U. S. Postal Inspection Service White-Collar Crime White-Collar Crime Program Section Links
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